Video City Signs Landmark Deal With Warner Home Video
Agreement Marks First DVD Revenue Sharing Arrangement Video City has announced that it has signed the industry's first DVD revenue sharing agreement. The agreement with Warner Home Video covers Warner Bros., New Line, HBO and Turner Home Video titles. The announcement was made by Richard Gibson, President and Chief Operating Officer of Video City. ""The fact that Video City is the first retailer to complete a revenue sharing agreement with a major studio for the explosive DVD format gives us an immediate strategic advantage in the marketplace. This agreement allows us to quickly offer our customers between 800 and 1200 DVD's for rental, without the costly outlay of capital that would normally be associated with such an extensive selection,"" Mr. Gibson said. ""The terms of the DVD agreement are mutually beneficial to both Warner and Video City and position both companies as leaders in the expanding DVD marketplace. We have been listening to our customers' requests for a greatly increased DVD selection, as evidenced in our test stores earlier in the year, and have responded decisively to address their needs,"" Gibson added. The agreement is effective immediately with the first DVD revenue sharing title to be carried by Video City being ""The Matrix"". Video City plans to extend the copy depth program to the West Coast Entertainment stores upon the closing of the merger, which is scheduled for December 1999. Upon completion of its merger with West Coast Entertainment, Video City will own 319 stores and have an additional 107 franchise outlets. It has grown substantially from 18 stores in the past year and a half and is one of the nation's fastest-growing entertainment companies. Source: Business Wire