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SRI Research: DVD-Video Signals Sunset for VHS Movies

27 Jun, 2001 By: Hive News

DVD owners purchased more than 20 movie discs during 2000 while the average VCR owner purchased fewer than 10 that year, according to the latest study by Menlo Park, Calif.-based Digital Futures at SRI Consulting Business Intelligence.

U.S. DVD-video sales more than doubled in 2000, reaching174 million units -- growing 135% above the previous year's sales, according to the study. Meanwhile VHS sales remained flat.

Michael Gold, author of the new report, offers 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 pricedat $20 to $30 (a same-day VHS version debuts at $70 to $90); DVDs are resistant to deterioration.

Gold comments, "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 disc, the report says, and despite the interest in hard-disc recorders, such as TiVo, future DVD recorders will also provide the capability to compile desired TV showsautomatically, pause a live broadcast, and resume playback at the viewer'sconvenience.

The reports says that the future for DVD videos promises a strong and growing market.

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