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To: DWB who wrote (17728)4/6/1999 4:07:00 PM
From: Moonray  Respond to of 25814
 
Circuit City Learns the High Price of New Video Technology
New York Times - April 6, 1999

nytimes.com

Could we have a moment of silence please, in memory of DIVX.<g>

o~~~ O



To: DWB who wrote (17728)4/6/1999 4:13:00 PM
From: Moonray  Respond to of 25814
 
DVD still doing boffo biz
Reuters - Tuesday April 6 2:37 AM ET

HOLLYWOOD (Variety) - DVD continues to play as a consumer must-have,
according to figures released by the Consumer Electronics
Manufacturers Assn. on Monday.

CEMA reported that manufacturers shipped more than 360,000 DVD players
to retailers during the first quarter of 1999, the three-month period
that ended March 26, continuing the phenomenal growth that DVD
experienced over the holiday period.

DVD Video Group, a Los Angeles-based industry watcher, said that an
additional 30,000 units were shipped during the last week in March,
bringing the quarter's total shipment to 390,000.

About 1.6 million players are expected to be in consumers' homes, with
the number expected to reach 3.3 million by the end of 1999. Lower
prices by the end of the year are expected to push more players.

But industry observers say sales could have been greater had retailers
not experienced a hardware shortage. Manufacturers are shipping their
third- and fourth-generation machines and are thinning out older models.

''Had there been a greater hardware inventory, we would have
sold more players and sold more software, as well,'' said Paul
Culberg, president of the DVD Video Group and executive
vice-president of Columbia TriStar Home Video.


DVD's numbers far surpass struggling pay-per-view rival Divx.
Comparably, its developer Digital Video Express, an offshoot of
electronics retailer Circuit City, has sold more than 100,000
Divx-equipped players in the U.S.

From 1997 to 1998, hardware manufacturers shipped 1.4 million DVD units,
and the DVD Video Group projects the number to exceed 2 million units
in 1999.

DVD software sales are also strong, with 10 million titles selling
during the quarter. Since the format's launch, studios and music
labels have shipped nearly 30 million DVD discs, according to
VideoScan, which tracks nearly 70% of the market.

DVD sales are expected to remain strong, now that studios are releasing
more than 200 new titles each month. The number of available titles
for rental or sell-through is expected to rise from the current 2,500
to 4,500 by the end of the year.

Comparably, Divx sold its 1 millionth disc in February. A possible
distribution deal with Blockbuster would give the technology a
much-needed boost.

o~~~ O