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Wednesday, June 27, 2001
DVD-Video Signals Sunset For VHS Movies

DVD owners purchased more than 20 movie disks during 2000. The average VCR owner purchased fewer than 10 that year, according to the latest study by Digital Futures at SRI Consulting Business Intelligence (SRIC-BI). U.S. DVD-video sales more than doubled in 2000, reaching 174 million units -- growing 135% above the previous year's sales. Meanwhile VHS sales remained flat...

Michael Gold, author of the new report, unveils reasons people buy DVD disks rather than rent: DVDs are replayable -- children frequently replay movies; viewers can skip ahead to memorable special effects or an outrageous scene in a film; same-day new-movie release on DVD is priced at $20 to $30 (a same-day VHS version debuts at $70 to $90); DVDs are resistant to deterioration. Gold observes, ``In-place DVD standards promise to enable a strong market development for DVD. Lack of standards will interfere with other delivery systems, such as home servers.''

Innovations to come will answer the audience demands for a recordable disk. Despite the interest in hard-disk recorders, such as TiVo, future DVD recorders will also provide the capability to compile desired TV shows automatically, pause a live broadcast, and resume playback at the viewer's convenience. The future for DVD videos promises a strong and growing market.

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