At Mid-Year, DVD-Video On Target to Beat Earlier Projections; Hardware Sales Growing At a Rate of 110 Percent Over Last Year.

Entertainment Editors

LAS VEGAS--(ENTERTAINMENT WIRE)--July 10, 2000

Software Shipments Experience Second Best Quarter Ever

Nearing 35 Million Units

Based on the performance year-to-date, the DVD-Video industry is on target to beat all earlier industry sales projections.

According to the Consumer Electronics Association (CEA), in the first half of 2000 DVD player shipments were 2.7 million units. This is more than double the number shipped in the first half of 1999. This represents incremental shipments of 1.4 million units as compared to the same six-month period in 1999.

If growth continues at this rate, there will be more than 9 million DVD-Video players shipped to United States retailers in calendar 2000, bringing the total units shipped since inception to more than 14 million.

According to figures compiled by CEA, there have been eight million players shipped to retail since the launch of DVD-Video in March 1997. The DVD Entertainment Group estimates that as many as 7.5 million DVD players are in consumer homes.

"Based on the numbers that are currently being reported, it is clear that DVD-Video has reached beyond the early adopter and is well on its way to mass market acceptance," said Emiel N. Petrone, chairman, DVD Entertainment Group and executive vice president, Philips Entertainment Group, Worldwide. "Based on the current growth trend, we expect to see a 10 percent household penetration well before the fall selling season. Once we pass that critical milestone, the possibilities for the fourth quarter are tremendous."

There are now more than 100 DVD player models marketed under 40 different consumer electronics brands. DVD-Video players are available at most traditional consumer electronics retailers and have become the focal point of the home theater category.

Software Sales Reaching New Heights

According to figures compiled by Ernst & Young on behalf of the DVD Entertainment Group, nearly 65 million DVD movies and music videos shipped in the first half of 2000, more than two and a half times the number of units shipped in the same period last year.

Since the format's launch in 1997, software shipments have reached 190 million units, according to the DVD Entertainment Group. Based on current growth rates, shipments will exceed 230 million DVD movies and music videos this year representing more than $4 billion in retail revenue.

"DVD has allowed studios to enhance the home viewing experience by providing insightful added value programming," Sandy Friedman, vice president/secretary of DVD Entertainment Group and head of worldwide operations at DreamWorks Home Entertainment. "As a result, we're seeing consumers embrace the format and actively collecting movies and music videos on DVD."

With all the major movie studios and music labels supporting the DVD-Video format, there are nearly 7,000 titles now available. The DVD Entertainment Group predicts that number to grow to more than 8,500 by the end of 2000.

The DVD Entertainment Group is a Los Angeles-based, industry-funded nonprofit corporation that exists expressly to promote consumer awareness of the benefits of DVD-Video and DVD-Audio, and to provide updated information to the media and the retail trade about DVD players and titles. As part of the group's new charter, it will also look to incorporate some future applications for the DVD format such as interactive games.

Regular members of the DVD Entertainment Group are 5.1 Entertainment Group, Artisan Home Entertainment, BMG Entertainment, Buena Vista Home Entertainment, Columbia TriStar Home Video, DreamWorks Home Entertainment, EMI Recorded Music, Funai Corporation, Image Entertainment, Kenwood USA Corporation, MGM Home Entertainment, New Line Home Video, Onkyo USA Corporation, Panasonic Consumer Electronics Company, Paramount Home Entertainment, Philips Consumer Electronics Company, Pioneer Electronics (USA), ProScan, RCA, Sharp Electronics, Sony Electronics, Sony Music Entertainment, Sony Wonder, Toshiba America Consumer Products, Twentieth Century Fox Home Entertainment, Universal Music Group, Universal Studios Home Video, USA Home Entertainment, Warner Home Video and Warner Music Group.

Associate members are Alpha Enterprises, Americ Disc, Cinram, California Video Center, Crest National, Deluxe Digital Services, Disc Graphics, Dolby Laboratories, DTS, Panasonic Disc Services Corporation, Sony Disc Manufacturing, Sony Pictures DVD Center, Technicolor, VM Labs and Warner Advanced Media Operations.

Interested consumers can reach the DVD Entertainment Group at 310/967-2940, via e-mail at [e-mail] or through its Web site at www.dvdinformation.com.