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To: BillyG who wrote (34073)	6/29/1998 7:39:00 PM
From: John Rieman	Respond to of 50808

Free DVD-ROM disks in the mail??????????????????????????? twice.com Warner To Blend Net And DVD-ROM - -June 29, 1998 By James K. Willcox Warner Bros. Online says it will blend internet technology and DVD-ROM-based entertainment content this fall with the release Drive-On, an original weekly entertainment show that will be contained on a DVD-ROM but unlocked for consumers visiting its web site. The effort, which Warner calls WebDVD, is a way to sidestep the difficulty of sending large amounts of audio and video data over common narrowband phone wires. Instead of streaming the A/V content, consumers will receive a WebDVD disc containing up to an entire season's worth of episodes. The disc is placed in a computer's DVD-ROM drive, and once the viewer has logged on to a Warner Bros. Online web site, HyperLock technology built into the site will unlock portions of the content and play it through the PC's browser. Warner Bros. Online VP Jim Banister described broadband as "the 'holy grail' for entertainment companies on the internet," but acknowledged that there won't be enough broadband households to amortize production costs for years to come. "Now we have a way to create broadband entertainment and deliver it to both broadband and narrowband homes," he said. "Over the next 18 to 24 months, we can turn this new form of entertainment into a business." The first interactive WebDVD show, Drive-On, is described as a mixture of "Hollywood-themed content, community and commerce, including a 20-minute TV-like segment." Warner didn't disclose whether the disc would be advertiser-supported or carry a nominal cost to the consumer. Because the content is controlled via the internet, there are a variety of options for interactivity, such as web-based contests and program endings that are customized to viewer responses.

To: BillyG who wrote (34073)	6/29/1998 9:19:00 PM
From: John Rieman	Respond to of 50808

Warner cuts prices. Interactive DVD, and Blockbuster delays DVD........................ newline.com THIS JUST IN... Warner Home Video is dropping suggested retail price for DVD to $19.98 for upcoming releases Sphere and U.S. Marshals, from $24.98 standard for similar A titles. Sphere is due July 14, while Marshals will be released July 21. Both titles carry minimum advertised price of $14.98 and will be released simultaneously with their VHS rental counterparts. Warner spokesman said $19.98 pricepoint does not represent new standard for the studio, but executives were unavailable for comment on why it was assigned to two titles ... 1983 movie WarGames will get new exposure courtesy of new videogame based on film. In mid-July, MGM Interactive and promotional partner Brachs Fruit Snacks will launch multimillion-dollar consumer ad campaign for July 15 release of WarGames: Defcon 1 for Sony PlayStation and PCs. MGM Home Entertainment senior VP of marketing Blake Thomas expects more than $1 million in TV advertising to boost rental of sci-fi game at video stores nationwide. Besides supporting videogame release with 30-second spots on youth-oriented national cable networks, such as MTV, ESPN, Comedy Central and Sci-Fi Channel, MGM Interactive is conducting WarGames sweepstakes that will award 25 consumers in 25 domestic markets WarGames DVD, VHS, game and T-shirt, among other things. Brachs Fruit Snacks is investing $1.5 million in cross-merchandising promotion, which includes coupon good for free WarGames video with purchase of any WarGames: Defcon 1 PlayStation or PC game. Although WarGames VHS tape has been in stores for nearly 15 years and DVD was released several months ago, Thomas said, "there still is a place in all gamers' hearts for what they consider to be the first [computer] hacker movie" ... Cross-promotion between online DVD rental store NetFlix (www.netflix.com) and Toshiba will provide three free NetFlix rentals to consumers who purchase one of hardware supplier's DVD players. Each rental is good for seven days, with three valued at $11 total. Consumers who have purchased Toshiba DVD player in past two years are eligible to participate in promotion by accessing NetFlix Web site ... As result of more-dramatic declines than expected in laserdisc market, laserdisc and DVD supplier/distributor Image Entertainment reported that net sales fell 11.9%, to $75.5 million, for fiscal year ended March 31. Company reported $9.6 million net loss for year, compared with $845,000 net income for 1997. Fourth-quarter results were worse, with sales dropping 30.3%, to $15.9 million, and $10.3 million net loss. President and CEO Martin Greenwald said in statement that Image continues to expand its DVD business and noted that DVD sales represented 21% of Image's gross revenues for fiscal year. "Unfortunately," he said, "DVD's growth has come at the expense of laserdisc sales." Nevertheless, company will continue to support laserdisc format, which it estimates is used in 2 million U.S. households. Because company expects retail stores to continue to cut back on laserdisc inventory, however, it will formulate Internet strategy for direct-to-consumer sales ... Optical-disc distributor DVD International and film producer Planet Theory have created one of first interactive DVD feature films. Titled I'm Your Man, $29.98 title gives viewers opportunity to control development of plot and outcome of film. It stars MTV commentator Kevin Seal and actor Mark Metcalf (National Lampoon's Animal House). Set for release Aug. 18, I'm Your Man allows viewers to choose from 60 plot scenarios that revolve around film's main characters. Viewers can either passively watch movie or interact throughout story's development. DVD also carries documentary with cast and crew discussing challenges of making interactive movie, "bloopers," original illustrated storyboards, and interactive version of director's audio commentary. Movie also is available on DVD-ROM ... Blockbuster will likely delay planned rollout of DVD rental in about 1,000 stores until fall, chain officials said last week. Earlier this year, CEO John Antioco said chain would begin DVD hardware and software rental in about 1,000 stores by July.