CLASSIC MOVIES BEGIN TO APPEAR ON DVD.

Byline: Greg Hernandez Staff Writer

Major movie rental chains like Blockbuster jam their shelves with DVD copies of such new releases as ``The Fast and the Furious'' and ``American Pie 2.'' Now Hollywood is playing catch-up with those who simply want to curl up on the sofa on a rainy day to watch a familiar classic.

``I definitely think the studios are tossing around the idea of reissuing more older titles for DVDs,'' said Brad Hackley, director of research for the Encino-based Video Software Dealers Association. ``There is a demand for it.''

For Hollywood's major studios, particularly those with extensive film libraries, the DVD is a huge untapped market and represents a new opportunity for growth.

MGM, for example, released more than 300 titles on DVD last year and expects to do the same this year including special editions of ``Bull Durham,'' ``The Usual Suspects'' and ``Coming Home.''

``It's a split market now and many stores are restocking with DVD titles as well as VHS titles,'' said Steve Wagner, a spokesman for MGM Home Entertainment. ``Many film aficionados prefer it on DVD.''

While few studios have the massive catalog of movies that MGM has, other studios said they are consistently releasing new DVD titles of classics with bonus features.

Fox Home Entertainment just released a special edition of the classic film version of ``M*A*S*H.'' Last year, Fox unveiled a two-disc ``five-star collection'' of ``The French Connection,'' a three-disc edition of ``Cleopatra'' and several Marilyn Monroe titles to commemorate what would have been the actress's 75th birthday.

``I think there is a very large appetite for classic films as long as they are presented properly,'' said Peter Staddom, senior vice president of marketing for Fox Home Entertainment. ``We try to do something really special with our DVDs as opposed to just putting out a disc and saying, `Here's the movie.'''

For Disney, the DVD format has played into the studio's longtime strategy of rereleasing its classics every decade or so. Last fall, the studio released its classic ``Snow White and the Seven Dwarfs'' on DVD amid much fanfare, and next month will release ``Peter Pan'' on DVD to coincide with the theatrical release of a sequel, ``Return to Neverland.''

``It's always been an evergreen market for us first in VHS, and it has become even more revitalized through the popularity of DVD,'' said Bob Chapek, president of Disney's Buena Vista Home Entertainment. ```Snow White' was the first time we had a classic on DVD and we were thrilled by the consumer response. The supplemental materials need to be made with the audience in mind, and we like to aim them at the family market.''

Disney this month released special editions of ``Tron'' and ``Newsies'' on DVD.

Blockbuster spokesman Blake Lugash said that as DVDs become more popular with renters, the 5,300-store chain has made more room for them on shelves once completely dominated by VHS tapes. In September, Blockbuster removed 25 percent of VHS inventory to make room for its growing DVD selections.

By the end of 2001, DVDs accounted for 30 percent of Blockbuster's rental revenue and is expected to account for about 50 percent within the next two years.

``We're actively building our DVD library with both new releases and older classic titles as they become available,'' Lugash said. ``The customers are quickly adapting to the format and have become accustomed to the added features and outtakes. But it's really up to the studios as to what titles they release on DVD.''

The Santa Monica-based 20/20 Video chain, which has scores of older titles available in VHS, is getting more requests these days for the DVD format for classic films.

``For the older titles, people generally just look for them on tape but if we have it on DVD, we'll let them know,'' said Sean Skoblar, manager of the chain's Van Nuys store.

As popular as DVD has become, Hackley said VHS still accounted for 83 percent of overall rental revenue for the industry in 2001.

``I think the studios have the luxury of time in switching over to DVD because a lot of people have multiple formats at home,'' he said. ``Until we get down to recordable DVD players, there will still be both formats.''