Warner will distribute Disney DVDs in overseas markets. This is a major move for Disney..........
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Disney, Warner band together on DVD
BURBANK, Calif., July 6 (Reuters) - The home video units of
Walt Disney Co. and Time Warner Inc., the two largest
entertainment companies in the world, on Monday said they
banded together in an overseas distribution pact for new
digital videodiscs.
Digital videodisc technology puts full-length movies on
compact discs the same size as audio CD's. Many industry
experts believe DVD could replace videotape for movies because
of its superior picture and sound quality.
Under the deal, Warner Home Video will distribute DVD
movies from Buena Vista Home Video, the Disney unit, in 30
territories spread across Europe, the Middle East, Africa and
in former Soviet Union countries.
The agreement covers over 100 titles and runs through the
year 2000. Financial details were undisclosed.
Each of the movies will be released simultaneously in DVD
and on videotape in the VHS format.
"Disney's expansion in the global DVD marketplace is a
major step in the international development and growth of the
format," said Warren Lieberfarb, president, Warner Home Video.
Warner has long been one of DVD's most active proponents
while Disney was slower to adopt the new media.
"We are very enthusiastic about the DVD format and our
signing of this deal marks our commitment to ensuring that it
becomes a thriving business," said Stuart Warrener, president
of Buena Vista Home Video Europe, the Middle East and Africa.
DVD was launched as a product just last year to initially
positive sales results in the United States from early adopters
of the technology. The next challenge for DVD advocates is
stepping up the pace of sales overseas and penetrating movie
rental markets, where VHS is the dominant format. |
