Media Industry
Industry: Email Alert RSS FeedVSDA says "Divx is a solution in search of a problem." (Video Software Dealers Assn; Divx Entertainment)(Industry News)
Tape-Disc Business, January, 1998
Divx is a solution in search of a problem." Jeffrey Eves, president of the Video Software Dealers Association (VSDA) told TDB recently. DVD has been aggressively promoted as a sell-through product with rentability almost ignored, but the reality is that "DVD is absolutely rentable," and no alternative is needed, he said. Divx executives came out contrasting their price of $5 per disc with a DVD sell-through price of $20 to $25. But is that a valid selling point for Divx? Eves doesn't think so. "Divx has a $5 rental price compared to a $3 rental price for everything else. Are consumers prepared to spend $2 more just so they do not have to take the disc back to the video store?" Eves asked.
When Divx's Richard Sharp met with the VSDA's Board of Directors, he...
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