November 10, 1999 17:52
The Walt Disney Company Announces New Worldwide Home Video
Strategy; 26 Classic Animation Library Titles to Be Available
Year-Round
BURBANK, Calif.--(BUSINESS WIRE)--Nov. 10, 1999--The Walt Disney Company is initiating a new worldwide strategy for releasing its classic library feature animation titles on DVD and VHS home video,
it was announced today by Joe Roth, chairman of The Walt Disney Studios.
The company will significantly increase the depth of its year-round video catalog by permanently making available 26 classic library feature animation titles over the next two years. The company also will create the Disney Platinum Collection, which will include another 10 classic library feature animation titles that Disney will hold in moratorium for a specific time period before reintroducing them into the market. To help accelerate the already-rapid growth of the DVD market, Disney will release all future titles on DVD and VHS simultaneously.
The Disney Platinum Collection will include "Snow White," "Beauty and the Beast," "Aladdin," "The Lion King," "Bambi," "The Jungle Book," "Cinderella," "The Little Mermaid," "Lady and the Tramp" and "101
Dalmatians."
Beginning in 2001 with "Snow White," Disney will release one title from the Platinum Collection on DVD and VHS each fall. Release of each title will be supported by a worldwide marketing effort that will
include cross-promotion initiatives by Disney's various business units, including Theme Parks and Resorts, ABC Inc., Disney Channel, Radio Disney, and go.com, as well as Disney promotional partners
such as McDonald's.
"This new cycle will allow us to maximize each film's performance by reaching an entirely new generation every 10 years," Roth said. "We will treat each Platinum Collection release as a companywide -- and worldwide -- event each fall. In addition, by creating a predictable, once-a-year, high-profile release, we will maximize consumer and retail excitement for each title," he added. "And as we've seen in the past, major campaigns such as this have a 'halo effect' that stimulates demand for all Disney products."
Disney also will make available on a permanent, year-round basis, its 26 remaining classic library feature animation titles. Currently unavailable titles will be released over the next two years and will be featured in year-round marketing programs that the company will develop to support the library. The company believes that adding these additional titles to its 2000-2001 release schedule will significantly increase the number of Disney video units sold worldwide during the period.
Going forward, Disney will release all future animated films on DVD and VHS simultaneously. "We believe that DVD represents a huge opportunity for our company," Roth said. "Just as with the VHS
format, which saw incredible growth of video unit sales as VCR penetration rose, DVD demand will surge as penetration levels hit critical mass. As people change over to DVD, they will augment their existing video libraries with discs in the new format."
Roth noted that there will be 4 million households with set-top DVD units and 10 million DVD-equipped personal computers by Christmas, with market penetration projected to continue its rapid growth. In
addition, DVD capability will be featured on soon-to-be-released, next-generation video game players.
"Our core audience of kids and teens will be watching DVDs on their computer monitors and their video game consoles as much as their parents will view DVD content on television," he said.
Disney's potential in the burgeoning DVD market is already apparent, Roth said, noting that Disney has three of the top 10 best-selling DVDs of all time: "Armageddon," "A Bug's Life" and "Enemy of the
State."
The company already announced that it would release nine of its classic animated titles on DVD in the United States for a limited time as part of the company's millennium celebration. "Pinocchio" was
released on DVD last month. It was followed by "101 Dalmatians," "Hercules" and "Mulan," which were released November 9.
"Lady and the Tramp," "Peter Pan" and "Simba's Pride (Lion King II)" will be released on November 23. "The Jungle Book" and "The Little Mermaid" will be released on December 7. Each title is available for 60 days, and each is being supported by a major marketing campaign that includes television ads highlighting "Disney DVD...Pure Digital Magic."
"The Disney Platinum Collection, along with our initiatives to release all other library titles and new feature animation titles on DVD and VHS, take advantage of the burgeoning DVD market while also enabling Disney to capitalize on the existing VHS market," Roth said. "Disney will have major DVD and home video events each year over the next decade, which we believe will leverage the significant value of
Disney's feature animation library."
CONTACT: The Walt Disney Co.
John Dreyer, 818/560-5300 |
