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Technology Stocks : Nimbus CD International -- Ignore unavailable to you. Want to Upgrade?

To: Tom M who wrote (1450)	3/25/1998 12:00:00 PM
From: Jim Fraser	Read Replies (1) \| Respond to of 1673

Interesting sales figures buried in this article... (The 4th qtr may be a bit better then last year for nmbs.) CONSUMER ELECTRONICS March 23, 1998, Monday "SPARKS FLY IN NARM DIVX- DVD DEBATE" BODY: Leading combatants in Divx- DVD debate took off gloves last week in discussion on NARM convention panel in San Francisco convened as face-to-face encounter on merits of DVD launch and possible impact of Divx introductions later this year. As expected, most heated exchanges were between Divx Entertainment Pres. Paul Brindze and Warner Home Video (WHV) Pres. Warren Lieberfarb. Brindze said that contrary to news reports, "Divx is DVD, " and more specifically, "a feature and a flavor of DVD. " He said Divx hardware will play all basic DVD software, although Divx-dedicated movies will play only on Divx players for 48-hour viewing period that starts when consumer pops disc into machine and presses "play" button. Sony DVD Mktg. Vp Michael Fidler later responded that Divx "really is not DVD, " because Divx "is an incompatible disc format" that's not playable on Sony DVD hardware and that of 11 other manufacturers. Fidler repeated claims that Sony has no plans to support Divx. Responding later to Circuit City questioner in audience whether that opposition was unequivocal, Fidler repeated Sony party line -- that company will monitor Divx developments. Except for Brindze, panelist after panelist sang praises of DVD format launch thus far as industry sales invigorator. For example, Musicland Chmn. Jack Eugster said his company in late 1980s rode CD revolution to same-store sales increases for 3 straight years: "I am convinced that this is the first time since then that the same set of factors have come together." He said that by Christmas, DVD had captured 3% of Musicland's total video sales and share since had grown to 8%. For Musicland, DVD has exceeded $7 million in sales thus far in 1998, he said. VHS market is "maturing," Eugster said, and "it is time for a new configuration to come along to give this new excitement to the business and do what we've all loved in the past -- to get people to buy the same thing over again in a new format." Echoing those contentions, Dusty Bowling, Best Buy mktg. mgr.-music & video, said his 286-store chain last week was expected to surpass DVD software sales of million copies. Best Buy already draws 20% of its video revenues from DVD, he said, and format's success has not "cannibalized" VHS sales. Following "humble" start of DVD year ago, when average Best Buy store devoted 16 linear ft. of display space to format, shelf commitment has grown to average of 32 sq. ft. and will double to 64 sq. ft. by July as chain begins preparing for fall holiday selling season, Bowling said. He said that if format is to grow, industry must "lobby" Fox and Paramount to release titles in open DVD and for Steven Spielberg's Amblin Entertainment to market repertoire as well. Similarly, Columbia TriStar Home Video Exec. Vp Paul Culberg said DVD format accounted for 3% of his company's gross revenues last year. Studio will account for 10-12% of industrywide pool of 1,500 titles expected by end of 1998, he said. Culberg said company has shipped 200,000 copies of Air Force One in first quarter. Assuming none has been transshipped overseas, Culberg said, volume equals one copy of title in every installed DVD home in N. America.