Barry Willis

The upswell in the popularity of DVD, and its low cost per disc, would seem to be a good thing for all concerned—movie fans, video stores, and film studios. But the very aspects of the new format that are making it grow so huge so fast may cause permanent changes in the business of video rentals and sales, especially for the studios.

How much responsibility should broadcasters be required to take in serving the public interest? On December 16, the <A HREF="http://www.fcc.gov/">Federal Communications Commission</A> launched an inquiry into the subject with a call for comments from the very people who will be served best, or worst, by the dawning age of digital television&mdash;the viewing public.

The popularity of DVD and home theater is driving sales of big-screen television sets to new heights&mdash;despite the fact that the rollout of digital television may make them obsolete in the near future. Sales of big-screen sets are up 13% over 1998, according to the latest statistics from the <A HREF="http://www.cemacity.org/">Consumer Electronics Association</A>. Ninety percent of the approximately 1 million units sold in 1990 were equipped to display only NTSC analog signals&mdash;or "legacy video," as industry insiders call it.

Want to own a piece of the studio that produced <I>Saving Private Ryan</I>? If you're a big player, you may soon have a chance to do so&mdash;through your broker. <A HREF="http://www.dreamworks.com/">DreamWorks SKG</A>, the entertainment combine founded by Stephen Spielberg, Jeffrey Katzenberg, and David Geffen, wants to raise $525 million through the sale of debt securities. The infusion of cash will be used to refinance old debts as well as to fund new productions, and will be repaid by worldwide box-office receipts, and video revenues from movies already in inventory or as yet unmade.