Circuit City Phasing Out VHS

Video Business Magazine has reported that Circuit City has officially announced its intention to eliminate the prerecorded VHS video format from its stores. While some Circuit City stores stopped stocking VHS as much as 6 months ago, the entire national network of 622 Circuit City stores is now phasing out the VHS format in favor of DVD. Prerecorded VHS movies will only be available through Circuit City’s online from now on. Circuit City retail stores will continue to carry VCRs and blank VHS tapes for the foreseeable future.

Charles Van Horn, president of the International Recording Media Association, points out that 90 million US households have VCRs while only 25 million American homes own a DVD player. However, last year, for the first time in the five year history of DVD, DVD players outsold VCRs, and as of early this month VHS rentals nationwide were down 21% compared to last year while DVD rentals were up by 122.9%. Van Horn is not alone in his criticism of Circuit City’s bold move. According to Bo Andersen, president of the Video Software Dealers Association, “VHS is by no means dead, and it is not dying. The VHS format will decline naturally with the growth of DVD, but it is far too soon to write its obituary.”

The anime industry, traditionally at the forefront of adopting new technology, has already virtually abandoned the VHS format in America. AnimEigo is the only American company to be officially DVD only, but Synch-Point no longer produces any new releases on VHS. AD Vision, Bandai, TOKYOPOP, and Pioneer have virtually discontinued all support for the VHS format. And Media Blasters, Central Park, and Viz have dramatically reduced their support of VHS.