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EXECUTIVES SEE POTENTIAL TO LIFT SUPERMARKET DVD SALES

LOS ANGELES -- With the once-booming DVD market starting to level off and experience modest sales increases, the supermarket industry could play a larger role in keeping sales momentum going, according to several industry executives attending the fourth annual Home Entertainment Summit: DVD Magic 8 conference here."The grocery [trade] has always been important to us," said Michael Arkin, senior vice

LOS ANGELES -- With the once-booming DVD market starting to level off and experience modest sales increases, the supermarket industry could play a larger role in keeping sales momentum going, according to several industry executives attending the fourth annual Home Entertainment Summit: DVD Magic 8 conference here.

"The grocery [trade] has always been important to us," said Michael Arkin, senior vice president, marketing, Paramount Home Entertainment, here. "Grocery and drug stores are areas of great opportunity. We believe there are opportunities in groceries for permanent exposure for children's products, especially because moms are shopping there with their kids."

Others aren't so sure. Tom Adams, president and senior analyst, Adams Media Research, Carmel, Calif., agreed the supermarket industry could profit more on children's and family DVDs. Adams said the supermarket industry must take a more aggressive approach with more shelf space and better positioning -- particularly at checkout counters. Sales of non-featured children's DVDs reached $723 million in 2004, Adams said, and he projects modest increases of $755 million in sales through 2009.

"Kids' products would sell like gangbusters if they put them in those slots at the checkout counter," Adams said. "But they refuse to do it."