Philips to stop selling VCRs in Australia, focus on DVD instead

February 12, 2004

Conductor reports to us that according to Herald
Sun, the Dutch electronics giant Philips has decided to stop selling VCRs in Australia.
As you probably already guessed Philips will instead concentrate more on DVDs.
Last year 1,4 million DVD players were sold in Australia, a 55 per cent increase
compared to 2002. Currently more than half of Australian homes have a DVD
player.

VIDEOTAPE may soon go the way of vinyl records after the decision
by Philips to stop selling VCRs in Australia. The electronics giant will concentrate on DVDs as
plummeting electronics prices and the desire for improved picture quality
fuels the DVD boom.

Industry analysts said sales of players and discs
outsold video for the first time last year. And the price of DVD machines
that record, rather than just play, also came within the reach of many
families. Top-quality DVD players also play CDs, making stand-alone music
players obsolete for many.

Philips Electronics Australia spokesman Scott Housley
said public acceptance and the advance of DVD technology had influenced
the company's decision. "The VCR has simply had its day. It is time to
move on for good," Mr Housley said.

Yet many consumers are expected to hang on to VCRs so
they can play their favourite old films -- at least until DVD recorders
become even more affordable.

According to market research firm GfK Marketing
Services, the average price of a regular DVD player slumped to just $ 223
last year -- a far cry from the $ 1000 price tag five years ago.

According to the article figures from the Australian Visual Software Distributors
Association show wholesale sales of DVDs to retailers and rental outlets jumped
68 per cent to more than 38 million discs last
year.

Source: Herald Sun