Warner Home Video DVD Revenues Top $50 Million; Collectible Classics Account for More Than 80 Percent of Warner Home Video DVD Revenues

January 8, 1998

First Year DVD Player Sales Outpace CD and VCR Debuts

Warner Home Video, a Time Warner Entertainment Company, Thursday announced at the Consumer Electronics Show that its 1997 DVD wholesale revenues totaled $50.6 million in the United States and Canada.

"DVD's performance has been strong, and our numbers prove it. Driven by sales of both new releases and catalog titles, we had total revenues of over $50 million, and we expect 1998 to be even better," said Warren Lieberfarb, president of Warner Home Video.

Warner Home Video DVD catalog revenues totaled $40.6 million, or 81 percent of its total DVD revenues. Revenues from new releases on DVD totaled $9.6 million, or 19 percent of Warner Home Video's total DVD revenues.

Warner sold more than three million DVDs to retailers in 1997, having launched nationally in August. The top five 1997 DVD titles from the Warner family sold as follows:

Titles Units Wholesale Revenues
"Batman & Robin" 91,521 units $1,486,301
"Twister" 86,840 units $1,410,282
"Eraser" 79,806 units $1,296,049
"Blade Runner" 64,791 units $1,052,206
"The Fugitive" 61,093 units $ 992,150

Warner Home Video will soon release "L.A. Confidential," "The Devil's Advocate" and "Midnight in the Garden of Good and Evil" on DVD simultaneously with their release on VHS. Warner Home Video will also soon release such titles as "The Shawshank Redemption," "Heat" and "The Lost Boys" on DVD.

Upcoming Warner DVD releases will also include such collectible classics as the recently acquired "My Fair Lady," plus "Camelot," "The Music Man," "Giant," "Cabaret," "The Outlaw Josey Wales" and "Rebel Without a Cause."

Warner is also set to issue popular concert videos on DVD, such as the Rolling Stones' "Bridges to Babylon Concert Tour" and the Eagles' "Hell Freezes Over Concert Tour."

Warner Home Video released "Contact" on Dec. 16, 1997. In its first two weeks of availability, Warner received more than 50,000 orders for the "Contact" DVD. Warner has also shipped 35,000 units of "Conspiracy Theory," released Dec. 31, 1997.

Musicland Stores Corp., demonstrating further evidence of strong demand for DVD, recently reported its first ever weekly DVD sales total in excess of $1 million (Dec. 14-20, 1997). "We are extremely pleased with the dramatic acceleration we are seeing in our DVD sales," said Gil Wachsman, vice chairman of Musicland.

"It appears that customers are buying a whole new library of DVD movies when they buy a DVD player. DVD has very quickly grown to a meaningful ratio to our video business, and it's ramping up much more rapidly than music CDs did in their infancy."

DVD's debut outpaced the first year of both the CD and VCR. Manufacturers shipped an estimated 340,000 DVD players in 1997 -- nearly 10 times the 35,000 CD players sold in 1983, its first year on the market. More than 500,000 players are expected to be shipped by DVD's one-year anniversary in March 1998. VCRs, which were introduced in 1975, didn't top 200,000 sales until 1977.

"In terms of both players and software, DVD is one of the most successful new product launches in the history of Best Buy. DVD players are selling briskly and, based on our estimates, the average DVD owner is buying 15-20 disks per player," said Brad Anderson, president and chief operating officer of Best Buy.

Steve Nickerson of Toshiba added, "We are very pleased with how DVD performed this holiday season, and we expect sales of DVD players to triple in 1998."

Open DVD's compatibility with computers is expected to create a significant new market for DVD in 1998.

"Microsoft is very excited about the new types of computing that will be available because of DVD," said Peter Biddle of Microsoft. "Our customers have told us that they want better audio and video and we are delivering that through our work on DVD in DirectShow and Windows 98. Customer demand, coupled with great innovation, is going to help drive the sale of 15 million DVD PCs in 1998."

With operations in 73 international territories -- more than the video division of any other studio -- Warner Home Video commands the largest distribution infrastructure in the global video marketplace.

Warner Home Video's film library is the largest of any studio, offering top quality new and vintage film titles from the repertories of Warner Bros., Turner Home Entertainment, Castle Rock Entertainment, HBO Home Video, New Line Home Video and MGM Home Entertainment.

Over the last several years, along with its Time Warner partner Toshiba, Warner Home Video has spearheaded the development and current successful launch of the Digital Versatile Disc (DVD), this year's hottest new entertainment product.

DVD -- the next generation digital storage medium representing the convergence of computer and television with applications for video, music and multimedia -- available at leading electronic hardware and software retailers throughout the United States since August 1997.

Already Released on DVD

  • "10"
  • 2 Days in the Valley (HBO)
  • A Christmas Story (MGM/UA)
  • A Little Princess
  • A Time to Kill
  • Absolute Power
  • Ace Ventura
  • Ace Ventura 2
  • Adam's Rib (MGM/UA)
  • Addicted to Love
  • Adventures of Pinocchio (NL)
  • All the President's Men
  • Amadeus
  • Arthur
  • Assassins
  • Austin Powers (NL)
  • Balanchine's Nutcracker
  • Batman
  • Batman & Robin
  • Batman Forever
  • Batman Returns
  • Beetlejuice
  • Best Years of Our Lives (HBO)
  • Birdcage, The (MGM/UA)
  • Bishop's Wife, The (HBO)
  • Black Stallion (MGM/UA)
  • Blade Runner (DC)
  • Blazing Saddles
  • Blown Away (MGM/UA)
  • Body Heat
  • Bodyguard, The
  • Bonnie and Clyde
  • Bridges of Madison County
  • Brigadoon (MGM/UA)
  • Bullitt
  • Caddyshack
  • Camelot (30th)
  • Candidate, The
  • Cat on a Hot Tin Roof (MGM/UA)
  • Chariots of Fire
  • Client, The
  • Color Purple, The
  • Conspiracy Theory
  • Contact
  • Cool Hand Luke
  • Cyborg (MGM/UA)
  • Dangerous Liaisons
  • Dark Victory (MGM/UA)
  • Demolition Man
  • Dirty Harry
  • Disclosure
  • Dog Day Afternoon
  • Dr. No (MGM/UA)
  • Driving Miss Daisy
  • Dumb and Dumber (NL)
  • Elvis: That's the Way It Is (MGM/UA)
  • Eraser
  • Executive Decision
  • Exorcist, The
  • Fathers' Day
  • Fire Down Below
  • Forbidden Planet (MGM/UA)
  • Forever Young
  • Free Willy
  • From Russia with Love (MGM/UA)
  • Fugitive, The
  • Get Shorty (MGM/UA)
  • Getaway, The (1972)
  • Glimmer Man
  • GoldenEye (MGM/UA)
  • Goldfinger (MGM/UA)
  • GoodFellas
  • Green Berets
  • Gremlins
  • Grinch/Horton (MGM/UA)
  • Grumpier Old Men
  • Grumpy Old Men
  • Hang 'em High (MGM/UA)
  • Hunchback of Notre Dame (RKO)
  • Interview With the Vampire
  • Island of Doctor Moreau (NL)
  • J.F.K. (DC)
  • Jailhouse Rock (MGM/UA)
  • Jeremiah Johnson
  • Jezebel
  • Ladyhawke
  • Last Man Standing (NL)
  • Lawnmower Man, The (NL)
  • Lethal Weapon
  • Lethal Weapon 2
  • Lethal Weapon 3
  • Little Shop of Horrors
  • Long Kiss Goodnight (NL)
  • Mad Max: Beyond Thunderdome
  • Man Who Would Be King, The
  • Mars Attacks!
  • Mask, The (NL)
  • Maverick
  • Menace II Society (NL)
  • Michael
  • Michael Collins
  • Midnight Cowboy (MGM/UA)
  • Mortal Kombat (NL)
  • Murder at 1600
  • My Fellow Americans
  • National Velvet (MGM/UA)
  • Nat'l Lampoon's Christmas Vacation
  • Nat'l Lampoon's Vacation
  • One Flew Over the Cuckoo's Nest
  • Outbreak
  • Outland
  • Pale Rider
  • Pelican Brief
  • Philadelphia Story, The (MGM/UA)
  • Player, The (NL)
  • Policy Academy
  • Poltergeist (MGM/UA)
  • Postman Always Rings Twice, The
  • Presumed Innocent
  • Private Benjamin
  • Purple Rain
  • Raging Bull (MGM/UA)
  • Rain Man (MGM/UA)
  • Red River (MGM/UA)
  • Right Stuff, The
  • Risky Business
  • Road Warrior, The
  • Rob Roy (MGM/UA)
  • Robin Hood: Prince of Thieves
  • Rocky (MGM/UA)
  • Rocky II (MGM/UA)
  • Rocky IV (MGM/UA)
  • Rosewood
  • Rumble in the Bronx (NL)
  • Searchers, The
  • Secret Garden, The
  • Selena
  • Seven (NL)
  • Shine (NL)
  • Show Boat (1951) (MGM/UA)
  • Singin' in the Rain (MGM/UA)
  • Sleepers
  • Space Jam
  • Spawn (NL)
  • Spawn Animated (HBO)
  • Species (MGM/UA)
  • Stagecoach
  • Strangers on a Train
  • Streetcar Named Desire (DC)
  • Tango and Cash
  • Teenage Mutant Ninja Turtles (NL)
  • Tequila Sunrise, The
  • Thelma & Louise (MGM/UA)
  • Tin Cup
  • Tom Jones (HBO)
  • True Romance (DC)
  • Turbulence (HBO)
  • Twister
  • Under Siege
  • Under Siege 2: Dark Territory
  • Unforgiven
  • Vegas Vacation
  • Viva Las Vegas! (MGM/UA)
  • What Ever Happened to Baby Jane?
  • Who's Afraid of Virginia Woolf?
  • Wild America
  • Wild Bunch, The
  • Willy Wonka and The Chocolate Factory
  • Witches of Eastwick, The
  • Wizard of Oz, The (MGM/UA)
  • Woman of the Year (MGM/UA)
  • Woodstock -- 3 Days of Peace and Music
  • Wuthering Heights (HBO)
  • Year of Living Dangerously (MGM/UA)
  • Zeus and Roxanne (HBO)

Upcoming DVD Releases

  • Cabaret (25th)
  • Camelot
  • Devil's Advocate, The
  • Giant
  • Heat
  • L.A. Confidential
  • Little Shop of Horrors
  • Lost Boys, The
  • Midnight in the Garden of Good and Evil
  • Music Man, The
  • My Fair Lady
  • Outlaw Josey Wales, The
  • Rebel Without A Cause
  • Shawshank Redemption, The
  • The Eagles' "Hell Freezes Over Concert Tour"
  • The Rolling Stones' "Bridges to Babylon Concert Tour"

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