High Def Brings High Sales Hopes; HD-DVD Players Due This Year; The initial next-generation devices will be pricey, but industry eyes big potential.(INTERNET & TECHNOLOGY)

Byline: BRIAN DEAGON

Hollywood studios, electronics retailers and consumer electronics makers have a potential gold mine waiting for them when a new generation of DVD players starts to arrive late this year.

Total U.S. sales of standard DVD players have approached $15 billion, says the Consumer Electronics Association. Many predict even higher sales of the new high-definition DVD players. And Hollywood is looking at a market that should surpass $10 billion a year in high-def DVD movie sales.

DVD players, introduced in 1997, are the fastest-growing consumer electronics product ever. The CEA says more than three of every four U.S. homes already own a DVD player. A shift to new high-def DVD players should go along with the move to high-definition TV and surround-sound systems to provide the best video experience in the home ever.

"The arrival of DVD players created a phenomenally successful business model, especially for the software (DVD movies and extra features)," said Mark Knox, a consultant for Toshiba on DVD technology. "Hollywood makes more money from home video sales than at the box office."

Going To Next Level

The shift to higher-quality home theater systems could boost the fortunes of consumer electronics retailers such as Best Buy for years -- and things already were looking up. In 2003 and '04, the industry recorded consecutive years of double-digit growth for the first time in a decade. The shift to digital video is the reason, says the CEA.