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CNN Live At Daybreak

Circuit City Selling DVD Movies Only

Aired June 25, 2002 - 06:57   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: So have you stepped up to new technology with a DVD player or are you holding on for dear life to that old VCR?

Our Ann Kellan looks at a trend of going digital.

(BEGIN VIDEOTAPE)

ANN KELLAN, CNN CORRESPONDENT (voice-over): The nation's second largest electronics retailer, Circuit City, is going digital, replacing VHS movies with DVDs at all its stores. For some, it's no surprise.

UNIDENTIFIED MALE: I think it's right about the right time. I mean VHS is old news.

UNIDENTIFIED MALE: All I buy is DVD format and all I rent is DVD format, so that's it.

WADE HUNT, CIRCUIT CITY DISTRICT MANAGER: Most of our customers are asking about DVD movies and not VHS movies.

KELLAN: A big advantage with a digital format like DVD, you never have to rewind. And you can easily access different places on the disk.

UNIDENTIFIED MALE: DVDs are the new wave of the future. VHS, out of there.

KELLAN: But considering 95 million households have VCRs compared with 30 million with DVD players, some say the move by Circuit City is premature.

UNIDENTIFIED MALE: Videotapes discontinued, that was a surprise.

KELLAN: And according to the Video Software Dealer's Association, people still rent three times as many VHS titles as DVDs.

(on camera): DVD players just out started selling VCRs last September, so VCRs aren't going away any time soon. One reason, you can't record on a DVD player unless you're willing to spend at least $700.

(voice-over): That's why Circuit City continues to sell blank VHS tapes and recorders. They're not relics yet.

UNIDENTIFIED MALE: I would say we're looking at probably 10 to 15 years before really consumers stop utilizing the product.

KELLAN: For some, upgrading to new formats is old hat. Remember vinyl albums?

UNIDENTIFIED MALE: My grandma has a few.

MARY WILLIAMS: Actually, I'm old enough to have had an eight track player and an eight track tape. I actually replaced it in cassette and then replaced it in CD. So there you have it.

KELLAN: This time around, Mary Williams has a plan -- to wait until the prices drop.

WILLIAMS: You're going to spend yourself into poverty being the first one on the block to have the new rewritable DVD. So I'll just wait.

KELLAN: But how long to wait? If history is an indication, VHS tapes will go the way of audio cassettes. They'll still be around in 20 years, but they won't be the technology of choice.

Ann Kellan, CNN, Atlanta.

(END VIDEOTAPE)

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