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To: John Rieman who wrote (35169)	8/13/1998 10:51:00 AM
From: Don Dorsey	Respond to of 50808

DVD REPLICATION TO REACH 1.28 BILLION UNITS BY 2002; International Recording Media Association Releases Exclusive Sales Statistics at DVD Production '98 UNIVERSAL CITY, Calif., Aug. 13 /PRNewswire/ -- The International Recording Media Association (IRMA) released exclusive sales forecasts on the growth and worldwide expansion of the international DVD marketplace at the DVD Production '98 conference here yesterday. According to IRMA's Worldwide Optical Media Intelligence Report, annual worldwide DVD replication will reach 1.28 billion disks by the year 2002. The numbers are part of the industry's most definitive study on the growth and direction of the world optical media marketplace, which contains statistics on all current and emerging optical formats. In his speech IRMA Executive Vice President Charles Van Horn explained to an audience of over 300 DVD production professionals, "We are obviously in the audience-building stage of the DVD marketplace. Audiences are slow to change with the introduction of new technology. An educational process is always needed. Look at 2002 as only the beginning of the format's introduction to the consumer mass market." Even though it's only a "beginning," IRMA's statistics chart a rapid rise for DVD during the next four years as the format establishes a strong consumer niche for itself in video, ROM audio, and blank recordable applications. Other statistics released in Van Horn's presentation include: -- North American DVD Video replication will be increasing from 40 million units in 1998 to 183 million units in 2002. -- Worldwide DVD Video replication will reach 64 million units this year and should grow to 430 million units in the year 2002. "Of course, DVD Video is a rather small marketplace in comparison to VHS, but as the first true convergence entertainment product the potential, according to our statistics, is tremendous," Van Horn added. Van Horn's presentation documented a strong "lift-off" for the new format, which offers tremendous opportunities for producers of content for DVD. According to IRMA statistics, consumers are embracing the format at a strong rate, with over 800,000 DVD Video households this year in North America, which is expected to grow to 8.6 million households by the year 2002. The growth of retail outlets will also propel the demand for DVD Video product. IRMA projects that the number of stores selling or renting the new format will increase from 5,000 outlets at the end of 1997 to more than 12,000 by the end of the year. "Sensible retailing and marketing will make DVD more apparent to all consumers -- not just early adopters -- who are acquiring DVD Video programs at an annual rate exceeding VHS sell-through buy rates, of 15-20 DVD Videos versus 10-15 VHS videos." Van Horn encouraged the Hollywood community to "emphasize the entertainment content and potential of DVD and not confuse the consumer audience with a technology story. In order to build the audience for DVD we must develop new and innovative programming that truly communicates the value of the new DVD format to its audience. IRMA, the 28-year-old association with 450 member companies throughout the world, serves as a forum for the exchange of management-oriented information on global trends and innovations which drive recording media. SOURCE International Recording Media Association -0- 08/13/98 /CONTACT: Charles Van Horn of the International Recording Media Association, 609-279-1700/ CO: International Recording Media Association ST: California IN: ENT CPR SU: PDT