DVD-AUDIO EMERGES AS NEW GLOBAL STANDARD

Music Industry Supports New Format Offering Superior Audio Quality to Consumers



LAS VEGAS (Jan. 6, 2001) - One of the most significant audio developments since the arrival of the compact disc, DVD-Audio promises to revolutionize the music world. Designed by music companies and consumer electronics manufacturers, DVD-Audio is following in the enormously successful footsteps of DVD-Video. It is creating a new global standard that brings the listening experience to an unprecedented level with dramatically superior sound quality and unique visual content made possible by advanced digital technology.

With the growing enthusiasm among the creative community to embrace the format, a steady flow of software is anticipated in 2001, with an estimated 165 titles to be available in the first half of the year.

"The response to Warner Music Group's first DVD-Audio titles has been overwhelmingly positive and we are thrilled to have more great titles in the works for regular monthly release," said David Mount, chairman and CEO of Warner Music Group's WEA, Inc. "The entire music community has enthusiastically embraced DVD-Audio. From artists and producers to consumer electronics manufacturers and music retailers, DVD-Audio is transforming the way people enjoy music."

"BMG has been actively involved in the development of DVD-Audio from its earliest stages and we're confident that the format's superior sound quality and special features offer consumers the most satisfying and enhanced listening experience available," said Kevin Conroy, chief marketing officer and president, new technology, BMG Entertainment. "We've been working closely with many BMG artists over the last year and are looking forward to releasing our first titles in 2001."

John Trickett, President and CEO of the 5.1 Entertainment Group added, "We are very excited to see DVD Audio titles selling so well. Our record labels have reported sales that have exceeded even our most optimistic projections. Within a week of launching our DVD Audio titles we received re-orders from several major retail stores because they had sold out our initial shipment. I think that this speaks well of the quality of the format and the fact the DVD Audio is actively delivering upon its long-awaited promise. Black and White audio is past; Color is here and it is here to stay."

The same excitement has been seen on the hardware side, with not only numerous major manufacturers supporting the format, but also the introduction of a variety of models including multi-disc carousels, mini-systems, portables and car players. More than 30 models will be available to consumers by the first half of 2001, from leading consumer electronics manufacturers including Integra, Kenwood, Onkyo, Panasonic, Pioneer, Technics and Toshiba. These DVD-Audio/Video combination players will play CDs, as well as DVD-Video discs, allowing consumers to continue to enjoy their existing music and movie collections.

"Consumers can look forward to seeing more and more new products in various configurations that offer DVD Audio capability," said Gene Kelsey, general manager, Panasonic Consumer Electronics Company. "Our expectation is that what DVD-Video did for movies, DVD-Audio will do for the music experience. We are already seeing a good response to the format and the hardware available for it."

Making Headway
As with any new technology, a learning curve exists when working with the creative tools necessary to implement DVD-Audio. Yet as a result of the strong cooperation and support for the format within the industry, a number of significant advances have developed over the last year. For example, the authoring process has improved dramatically. Six months ago a DVD-Audio disc required a month, if not more, to author. Today, a disc can be authored in a fraction of that time.

Another area of meaningful progress for the format has taken place in the creation and implementation of a new copyright protection system. All hardware supports the copy protection system that utilizes a new encryption scheme and optional watermarking.

Advanced Resolution™ Sound
Like DVD-Video, DVD-Audio discs offer at least seven times the data capacity of a CD. This increased capability is used to provide Advanced Resolution TM audio, multi-channel surround sound, as well as optional bonus tracks, text and graphics that can be accessed from on-screen menus.

DVD-Audio reaches its high quality performance by using a sampling rate of up to 192 kHz compared to 44.1 kHz for CD. And DVD-Audio delivers sound using up to 24 bits of resolution compared to 16 bits for the CD. Wider frequency response, greater dynamic range and multichannel surround sound create outstanding clarity and more realistic recordings. Those innovations bring remarkable sound quality that is far superior to CD.

The format's Advanced Resolution sound in stereo (two channels) and multi-channel surround sound (up to six channels) gives listeners an experience that is far more faithful to the master recording, bringing the audience closer to the artist's original vision than ever before possible. And it does so without requiring "lossy" compression technology, giving DVD-Audio the ability to deliver the highest fidelity yet offered in a consumer format. Because Advanced Resolution, multichannel audio requires so much data capacity, content providers have the option of using a special form of lossless coding called Meridian Lossless Packaging (MLP). Using MLP enables content providers to fit traditional album length programs of Advanced Resolution Stereo and multichannel content on the same disc. All DVD-Audio capable players can playback MLP content. A Dolby Digital (5.1 or stereo) or LPCM stereo mix may also be included on the disc that is compatible with existing DVD-Video players in the marketplace.

New Capabilities
While the additional data capacity of the DVD-Audio disc is used primarily for higher quality music, it can also be used to include new kinds of value-added content. During music playback, DVD-Audio discs can also display still screen graphics displaying lyrics, playlists, credits, liner notes, photo galleries, or artist biographies. Short music video segments may also be included to offer a music video clip, archival footage or artist commentary. All the additional content can be accessed from friendly on-screen menus if the player is connected to a video screen. When discs are played from an internet connected PC DVD-ROM drive, some titles can also link listeners to related websites, which allows fans to get the latest news and updated tour information.

Steady Flow of DVD-Audio Titles Now Available
Already released on DVD-Audio are recordings by Stone Temple Pilots, Natalie Merchant, Aaron Neville, Emerson, Lake & Palmer, The Doors, The Big Phat Band, Buena Vista Social Club, The Firesign Theater and Jazz at the Movies Band. Classical music titles already introduced include works conducted by Yutaka Sado (Chabrier/Ravel), Daniel Barenboim, (The complete Beethoven Symphonies), Nikolaus Harnoncourt (Johann Strauss in Berlin) as well as Handel's "Messiah" and Tchaikovsky's "The Nutcracker" by the London Symphony Orchestra. Scheduled for release on DVD-Audio are albums from Neil Young, Dishwalla, k.d. lang, Barenaked Ladies, Glenn Phillips, David Becker, Miles Davis, Steely Dan, Fleetwood Mac, Joni Mitchell, Kronos Quartet, The Corrs and others.

Releases of other titles across all musical genres are accelerating as music companies and studios continue to adopt the technology. Previously released titles can be remixed for multichannel surround sound or remastered for Advanced Resolution stereo to bring listeners closer to the original master recordings. Newly recorded titles will also emerge that take full advantage of DVD-Audio's unique capabilities.

DVD Entertainment Group
The DVD Entertainment Group is a Los Angeles-based, industry-funded nonprofit corporation that exists expressly to promote consumer awareness of the benefits of DVD-Video and DVD-Audio, and to provide updated information to the media and the retail trade about DVD players and titles. As part of the group's charter, it also looks to incorporate future applications for the DVD format such as interactive games.

Regular members of the DVD Entertainment Group are 5.1 Entertainment Group, Artisan Home Entertainment, BMG Entertainment, Buena Vista Home Entertainment, Columbia TriStar Home Entertainment, DreamWorks Home Entertainment, EMI Recorded Music, Funai Corporation, Image Entertainment, Kenwood USA Corporation, MGM Home Entertainment, New Line Home Video, Onkyo USA Corporation, Panasonic Consumer Electronics Company, Paramount Home Entertainment, Philips Consumer Electronics Company, Pioneer Electronics (USA), ProScan, RCA, Sony Electronics, Sony Music Entertainment, Sony Wonder, Toshiba America Consumer Products, Twentieth Century Fox Home Entertainment, Universal Music Group, Universal Studios Home Video, USA Home Entertainment, Warner Home Video and Warner Music Group.

Associate members are AGI, Alpha Enterprises, Americ Disc, Cinram, California Video Center, Crest National, Crush Digital, Deluxe Digital Services, Disc Graphics, Dolby Laboratories, DTS, InterActual Technologies, MRT Technology, Panasonic Disc Services Corporation, Sony Disc Manufacturing, Sony Pictures DVD Center, Technicolor, VM Labs and Warner Advanced Media Operations.

Consumers can reach the DVD Entertainment Group at (310) 967-2953, via e-mail at getinfo@dvdinformation.com or through its web site at www.dvdinformation.com.