Re: DVD Market Penetration

QUESTARCHI@aol.com
Fri, 7 Jan 2000 09:26:36 -0800 (PST)

DVD's impact on retail is tremendously strong; no one involved in retail
talks about anything else. Borders, for instance, has weeded out most of its
VHS and replaced it with DVD. Big boxes like Costco and Best Buy are
featuring at least as much DVD as VHS. Every video retailer is rushing to
fill their shelves. Best Buy is now offering four head stereo VCRs for
$59.99; but there are many DVD players available in the $200-250 range. DVD
adoption is actually progressing more rapidly than did CD-audio at the same
point in its cycle.
This is in marked contrast to the institutional market, where there's very
little activity yet - at least through the last months of 99. Of course the
great majority of DVD releases are high profile theatrical, though National
Geographic has just released seven DVD titles.
VHS is going to be around for some time obviously, especially with
dropping prices; Universal (I think) is releasing all the Spike Lee films in
VHS at 8.99, SP. But in the retail market DVD mania prevails.

John Robey
Questar