Warner Home Video DVD U.S. Gross Sales Exceed $170 Million 1998 Sales Soar 240 Percent Over Previous Year DVD Accounts For More than 18 Percent Of Total Forth-Quarter Gross U.S. Sell-Through Sales
Warner Home Video (WHV), a time Warner Entertainment company, announced at the Consumer Electronics Show that its 1998 DVD wholesale domestic gross sales exceeded $170 million - a more than 240% increase over DVD sales of approximately $50 million in 1997. This total encompasses Warner's distributed lines including New Line, MGM, HBO Turner and Castle Rock. WHV said that in 1998, the first full year of DVD availability, DVD accounted for more than 10% of the company's total domestic gross sales. DVD sales were particularly strong in the forth quarter, accounting for 18% of all U.S. sell-through gross sales. ""DVD's performance has exceeded expectations, and our numbers prove it,"" said Warren Lieberfarb, President, Warner Home Video. ""DVD was a breakout hit during the holiday season, and we expect consumer and retailer enthusiasm to experience continued growth in 1999."" Demonstrating further evidence of strong demand for DVD manufacturers shipped more than 1.4 million DVD players to retailers since the spring 1997 launch. The 1 millionth player was shipped in early November, with an additional 400,000 shipped through the remainder of the year, illustrating DVD's breakout success in the holiday season. Additionally, DVD was established in 1998 as a rental, as well as sell-through, product, with rentals priced at the same or lower rates as VHS tapes. At year's end, DVD was available for sale or rent at more than 16,000 retail outlets nationwide. DVD, offering superior picture and sound quality, convenience, exciting interactive features, viewing options and an affordable price, was launched in test markets in March 1997 and rolled out nationwide in August of that year. To date, based on volume of players shipped, DVD's launch is 10 times more successful than that of the CD or VCR. With operations in 78 international territories - more than the video division of any other studio - Warner Home Video commands the largest distribution infrastructure in the global video marketplace. WHV's film library is the largest of any studio, offering top-quality new and vintage titles from the repertoires of Warner Bros., Turner Home Entertainment, Castle Rock Entertainment, HBO Home Video, New Line Home Video and MGM Home Entertainment. For more information contact: Gail Becker at 818 954 2732.