DVD Industry Launches Year 2000 With Record Marketing Drive; Leaders Reunite for Massive DVD Promotion Aim to Double Player Sales in 2000.

Entertainment Editors

LAS VEGAS--(ENTERTAINMENT WIRE)--Jan. 6, 2000

A record number of Hollywood studios in association with leading hardware companies today announced a first quarter marketing program designed to catapult DVD sales.

It is projected that the industry installed base will double in 2000 reaching more than 10 million households by the end of the year.

Columbia TriStar, Metro-Goldwyn-Mayer, New Line Home Video, Universal Studios Home Video and Warner Home Video in association with JVC, Panasonic, Philips, Pioneer, Samsung, Sony, Thomson Multi-Media (RCA, Proscan, GE), Toshiba and Zenith will launch the largest DVD promotion ever. The winter campaign expands on last year's multi-studio and multi-brand DVD marketing program, which ran from August 22, 1999 to January 2, 2000.

"The multi-company promotions have generated excellent retailer and consumer response - enough to commit to a new campaign, extending our efforts even further across the software and hardware industries," said Mark Horak, senior vice president, marketing, Warner Home Video. "February 19 will be the kick-off for the biggest, most comprehensive DVD promotion ever created."

The program will feature five free DVD movies with the purchase of one of any model DVD player made by JVC, Panasonic, Philips, Pioneer, Samsung, Sony, Thomson Multi-Media (RCA, Proscan, GE), Toshiba or Zenith. The offer will be valid on player purchases made between February 19, 2000 and May 30, 2000. The campaign will be supported by a multi-million dollar television and print advertising program and will include point-of-purchase materials for retail display.

The five free DVD movie titles are Fools Rush In from Columbia TriStar, Get Shorty from Metro-Goldwyn-Mayer, The Mask Platinum Series(TM) from New Line Home Video, The Jackal: Collector's Edition from Universal Studios and Analyze This from Warner Home Video.

"DVD has realized consumer acceptance and growth unprecedented in the history of consumer electronics. This high-visibility promotion will help us achieve our goal of 10 percent household penetration this year and ensure the long term success of this format," said Paul Culberg, executive vice president worldwide, Columbia TriStar Home Video and president, DVD Video Group.

"The opportunity to buy a new DVD player and start a title library with five free movies is an undeniable incentive for consumers," said Joe Pagano, vice president music and movies, Best Buy. "It's an exciting promotion that will continue to create awareness for the format and make it easy for customers to participate in the DVD experience."

In its first three years, DVD has outsold the VCR by five to one and the CD by four to one. Over 100 million discs have been sold and nearly 5 million DVD players have been installed in consumer homes to date. More than 5,000 DVD titles are currently available from every major studio for sale or rent, at traditional retail outlets and through on-line services.