DVD Video Experiences Explosive Growth DuringFirst Half 1999

At Fridayís poorly attended business session of the 18th Annual Video Software Dealers Association (VSDA) convened at the Los Angeles Convention Center, the DVD Video Group released Consumer Electronics Manufacturers Association (CEMA) figures accounting for more than 1.1 million DVD-Video players that were shipped to retailers through the first half of the year. While DVD seems to be the hot ticket, surprisingly, little formal attention at the convention was paid to the fledging format, which thus far has not been widely adopted by the associationís independent home video retailers.DVD-Video experienced 300 percent growth in second quarter 1999, shipping more than 730,000 hardware units to retailers compared to 170,000 in the second quarter of 1998. Further, the shipments for the first six months of 1999 are an increase of 881,000 units over the same period in 1998, representing more than 300 percent growth. In the first half 1999, 1.1 million units shipped compared to the first six months of 1998 when slightly more than 260,000 units shipped.Available to consumers for just over two years, the DVD Video Group estimates that more than two million players are installed in consumer homes whereas mid-year 1998, there were less than 500,000 units in homes. CEMA estimates that total shipments to retailers for 1999 will exceed three million hardware units. The installed base is expected to grow to 3.4-4 million hardware units by year-end 1999.""Obviously, the consumer continues to embrace DVD-Video as their video experience of choice,"" said Emiel N. Petrone, Chairman of the DVD Video Group and Executive Vice President of Philips Entertainment Group, a unit of Philips Electronics. ""Sales of both DVD-Video hardware and software have been extremely successful making DVD the fastest growing consumer electronics product in history.""The DVD Video Group includes eight of the leading consumer electronics manufacturers whose products represent more than 95 percent of the players in the market. The DVD Video Groupís figures are based on member company shipment numbers and are updated on a regular basis.Software Sales Riding Wave Of Hardware GrowthAccording to figures released on Friday by the DVD Video Group, more than 25 million discs have been shipped to retail thus far in 1999, nearly the same amount that shipped in all of 1998. More than 56 million units of DVD-Video movies and music video titles shipped to retail since the format launched in spring 1997. The figures were complied by the accounting firm of Ernst & Young, LLP and is part of a series of research projects conducted for the DVD Video Group.""The explosive growth underscores consumersí appetite for DVD-based entertainment,"" said Paul Culberg, President, DVD Video Group and Executive Vice President ñ Worldwide, Columbia TriStar Home Video. ""Additionally, weíre pleased to see consumersí tastes expanding toward broader family oriented and classic titles.""Disc sales are expected to remain strong throughout the year, as witnessed by the more than 200 new titles being released each month. Currently, there are more than 3,300 titles available and the DVD Video Group projects that by the end of 1999 there will be nearly 5,000 available for rental and sell-through.The DVD Video Group software member companies provided the requested information directly to Ernst & Young LLP, who compiled the data and provided it to the DVD Video Group. The participating companies represent more than 90 percent of the North American DVD Video software market.Consumers can reach the DVD Video Group at 323 845 0160 or through its Web site at www.dvdvideogroup.com.