DVD Hears The Cheers For Strong Launch But VCR With A Base Of 200 Million Hardware Units Builds Strong Case For Continued Growth

Rather quietly, VCR hardware sales have passed the 200 million mark in North America. Instead of cheering, VCR supporters are encouraging consumers and the consumer electronics industry to recognize the huge base of video cassette recorders in the home where segments of the family have established their own mini-theaters.""Each segment - the children, teenagers or adults - can choose a broad array of video programs on tape,"" said Charles Van Horn, President of the International Recording Media (IRMA). ""Counting these multiple markets within the home, the VCR has new opportunities to reinvigorate a business capable of selling over 27 million new VCRs last year into a market that now counts multiple VCRs in 53 percent of homes in North America.""We believe the record VCR sales last year will continue into 2000 as lower hardware prices attract more consumers and VHS program demand worldwide continues at a strong level, led by $11.8 billion generated in program supplier revenue in North America,"" IRMA is spearheading an industry promotional effort to call attention to the large base of VCR owners who represent sales opportunities in both blank and programming tapes. ""The industry has done an outstanding job in launching Digital Video Disc (DVD), a digital performance system that commands a higher price than VCRs today,"" he noted. ""But consumers continue to believe in the VCR and its recording capability which suggests that as an industry we should learn to market both products for a worldwide market that is clearly interested in having more electronic entertainment products in the home. It does not have to be - nor should it be - an either/or decision.""Van Horn noted that the torrid sales pace of both DVD and VHS recorders has continued into the new year. Industry VCR sales rose 16 per cent to 1.95 million units halfway into the second month while DVD sales increased sharply to 479,150 units.IRMA has made available ""The Worldwide VHS and 8 mm Videotape Market Intelligence Report"" that provides past results and future estimates of the VHS and 8mm. product categories. The report estimates as a likely scenario that worldwide DVD will be sold into 15 million households by the end of 2000, compared with more than 400 million households that own some 600 million still-in-use VHS VCRs.Drawing on its worldwide membership of 450 companies participating in the tape and optical media industry, IRMA is the advocate for the growth and development of all recording media. It is the industry forum for the exchange of information regarding global trends and innovations.