Record-Breaking DVD Hardware Sales Expected This Holiday Season

15-Nov-00

After three years on the market, DVD players are on track to be in 12 percent of U.S. homes by year's end, making it the fastest rollout of a consumer entertainment technology since black-and-white television in the 1940s, according to Adams Media Research. As consumers begin to accept DVD hardware into their homes, Blockbuster (NYSE: BBI), the global leader in rentable home entertainment, expects the rental of DVD media to be one of this year's hottest holiday stories. With approximately 3.8 million units shipped through August 2000, the Consumer Electronics Association (CEA) - which tracks data for the industry - recently reported that year-to-date DVD player sales to dealers were running double to what they were through August 1999, and the association estimates total DVD player shipments for 2000 to exceed 6.5 million units. As the world's largest renter of DVDs, Blockbuster has actively stocked more than 1,000 units on average in the majority of its stores and is ready to satisfy the demand for digital entertainment. ""As the market for DVD players continues to expand at a significant pace, and as people try out their new players, we expect digital format rentals to be a strong category for us this holiday season,"" said Dean Wilson, Chief Merchandising Officer, Worldwide, for Blockbuster. ""As a result, we are constantly increasing our inventory of this product."" In anticipation of strong holiday sales for DVD, Blockbuster experts evaluated and selected the ""Top 20 Must-Have"" DVD titles and posted them on its Web site, blockbuster.com. The ""Top 20"" films were selected to optimize DVD player features such as digital picture and sound, storyboards, and director interviews. Shoppers can visit the special Holiday Gift Center section of the site to link to the list and purchase one or all of the top 20 titles selected by Blockbuster. In tandem with the exploding DVD market, the VCR business is showing some nice gains as well, according to CEA research. For the first eight months of 2000, more than 13.5 million VCRs were shipped to dealers, an increase from 1999, showing that the VCR market is still strong. ""This has been an extraordinary year for VCR sales, demonstrating a continued interest in the technology even with the explosive growth of DVD,"" remarked Todd Thibodeaux, CEA's Vice President of Market Research. ""With billions already invested by consumers in video libraries, they are taking advantage of declining VCR prices and increased features. We can expect the VCR category to remain healthy, even while DVD sales continue to grow."" For those needing a new game console, CD player and DVD player this holiday season, look no further than Blockbuster to find the new Sony PlayStationÆ 2 (PS2). As a ""three in one"" machine with the capability to play audio CDs and DVD movies in addition to games, the PS2 offers something for everyone. Blockbuster has both the hardware and software for rental at stores nationwide and anticipates PS2's introduction to increase DVD rentals. For more information about Blockbuster Inc., visit blockbuster.com.Source: Blockbuster Inc.

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