REVOLUTION IN HOME VIDEO DVDS FAVORED FORMAT.

Byline: Greg Hernandez Staff Writer

DVD software sales - fueled by holiday blockbuster releases like ``Shrek,'' ``Star Wars: Episode One - The Phantom Menace'' and ``How the Grinch Stole Christmas'' - are expected to double from last year in another clear sign that the format has transformed the home video industry.

Fueling this unprecedented boom is the rapid rise in the sale of DVD hardware, which should also double this year, resulting in the disc players being in more than 25 million homes. There are also 15,000 DVD software titles now available, with the number of DVDs shipped to retailers this year reaching an astounding 400 million.

Leading the charge are DVD versions of some of the highest-grossing films of each of the last three years: ``The Phantom Menace,'' ``The Grinch,'' and ``Jurassic Park III.'' Adding to the surge are the new release of coveted catalog titles such as ``Snow White and the Seven Dwarfs'' and ``The Godfather Collection.''

But that is only the beginning.

Classics such as ``Citizen Kane,'' ``Star Trek: The Motion Picture'' and ``Forrest Gump'' have been released on DVD for the first time as well as the Disney animated favorite ``Snow White and the Seven Dwarfs'' which set an industry record by selling 1 million copies on its first day of release.

``You have never before had this confluence of old, recent and brand-new titles all coming out for the first time on DVD at the same time,'' said Scott Hettrick, editor in chief of Video Business, an industry trade publication. ``Also in terms of sheer volume, the number of movies being released in unprecedented.''

This has resulted in more consumers than ever beginning to build home libraries of their favorites.

Methodically scanning the endless shelves of DVDs at a Target store in Woodland Hills this week, shopper Angela Kniep was one a mission to find the perfect DVDs. Kniep had just bought her teen-age son, Aaron, a new DVD player for Christmas and started his collection with the entire first season of ``The Simpsons.'' She's planning to buy four more to complete her Christmas gift.

``We're not buying VHS anymore,'' the Canoga Park resident said. ``We love the DVD so much for the quality plus the outtakes and the extras.''

The Minnesota-based Best Buy chain, which has 477 stores nationwide, is getting a lot of shoppers just like Kniep. The chain now carries 3,000 DVD movie titles compared to only 500 VHS titles. VHS used to dominate the chain's home video shelves but that has changed since sales of DVD players began to skyrocket.

``In terms of buying movies to own them and collect them, DVD has really been the clear winner over VHS,'' said Best Buy spokesman Jeff Faust. ``It's basically changed the whole business of home video. More people have VCRs but the difference is that more people are buying DVDs because they want to add them to their collection. That wasn't the case with VHS.''

``It's mostly due to the quality, the digital video and sound and the way that people feel they are at a theater,'' Faust added. ``Also, it's a more valuable purchase when you get your favorite film on DVD with the quality and extras. When people were buying VHS, they would deteriorate over time with use, that's how tapes work. DVDs won't do that. You know you can watch it 1,000 times without any loss in quality.''

Boxed sets containing movie collections or episodes of classic or current television series are becoming an increasingly big seller, industry experts said. A prime example is the new set, ``The Godfather Collection,'' which is comprised of all three ``Godfather'' films and an entire disc of behind-the-scene extras.

``They took a while and put together a really cool boxed set with all the features and a lot of people were waiting for that,'' Faust said. ``Boxed sets are definitely a great option for a lot of consumers.''

Other new boxed sets this season include ``Stanley Kubrick Collection,'' ``Woody Allen Gift Set,'' ``Rodgers & Hammerstein Musicals,'' ``The Sopranos: The Complete Second Season,'' a new collection of ``Friends'' episodes, and ``I Spy: The Robert Culp Collection, Vol. 1&2.''

Donner said that the popular boxed sets containing episodes of television series should definitely see an increase next year ``to satiate the consumer's appetite.''

The DVD format is also signaling a second life for films that may not have lived up to expectations at the box office. Disney's much-ballyhooed epic ``Pearl Harbor'' didn't reach $200 million, as had been widely expected, during its theatrical run this spring. But the DVD version of the Michael Bay-directed film set an industry record by selling a stunning 3.7 million DVDs in its first week, a total that surpassed the 3 million mark set just last month by ``The Grinch.''

It was just two months ago that ``The Mummy Returns'' became the first DVD to ever sell 2 million copies in its first week of release and just last week, DreamWorks' ``Shrek'' became the best-selling DVD in history with 5.5 million copies sold and broke the record of 5 million set by ``Gladiator'' last year.

The remake of ``Planet of the Apes'' nose-dived at the box office after a huge opening weekend this summer but the DVD version of the film, loaded with extras, is now a top seller.

Another emerging trend is the rise of obscure films on DVD such as the sci-fi movies ``The Screaming Skull'' and ``Attack of the Giant Leeches'' and the horror fantasy, ``Hellraiser.''

For avid movie fans like Studio City resident Nancy Caldwell, building a DVD collection is truly daunting, especially since her VHS collection numbers over 300. But she said she is having tremendous fun segueing over to the new format.

Caldwell, a screenwriter shopping for DVDs at the Woodland Hills Target during lunchtime this week, said for her, the real selling point is ``getting to know more about the background of the movie with the actors and directors talking.''

Hettrick said the extra features have essentially become a required part of the package.

``The jury is still out as to whether any of the extras are necessary in terms of sales but the key thing is now, it is expected,'' he said. ``People expect the DVD to include several hours of extra material like behind-the-scenes, outtakes and audio commentaries. That is one of the most promoted benefits of DVD.''

Amy Jo Donner, executive director of DVD Entertainment Group, a trade association for the DVD industry, said the boom in software has corresponded with the sales of the DVD players as well as an overall jump in the sales of new television sets and surround sound-systems.

``DVD has reintroduced movie-lovers to a whole new way to enjoy movies at home,'' she said. ``An extension of that is the huge growth or surge of the software sales. People are collecting these movies, they are not just renting them. They are buying them and making them a part of the family library.''

CAPTION(S):

photo

Photo:

(color) Nancy Hansen of Santa Clarita looks over the large collection of DVD movies at Target in Woodland Hills.

David Sprague/Staff Photographer