BUENA VISTA HOME ENTERTAINMENT

In 1999, Buena Vista Home Entertainment continued its success in the made-for-video arena with the release of The Lion King II: Simba’s Pride, which became the top-selling made-for-video title of all time with 23 million units sold worldwide.

BVHE also continues to lead the way in the live-action global sell-through market. In 1999, Armageddon surpassed Pretty Woman as BVHE’s top-selling live-action title of all time in sell-through markets around the world.

Domestically, the best-selling titles of 1999 were Mulan and A Bug’s Life, which was the number one sell-through title of the year. In the rental market, Enemy of the State and Shakespeare in Love were top performers.

In November, BVHE announced a new strategy to revitalize Disney library sales, creating the Disney Platinum Collection. The Platinum Collection will consist of 10 films -- Snow White, Beauty & the Beast, Aladdin, The Lion King, Bambi, The Jungle Book, Cinderella, The Little Mermaid, Lady and the Tramp and 101 Dalmatians. One of these films will be released each fall on video and DVD and then will be withheld from the market for 10 years. All other library titles will come off moratorium and be sequenced back into the market starting in January, 2000. This strategy allows for an annual library event, while making all other titles available to consumers on an ongoing basis. Also, all new animated films will be released onto DVD and video simultaneously. In response to the growth in the DVD market, BVHE released several animated classics on DVD for the first time last fall, including Mulan, Hercules, Lady and the Tramp, The Little Mermaid, Peter Pan, Pinocchio, 101 Dalmatians and The Jungle Book.

This year, Tarzan is expected to be the division’s best-selling title since Toy Story. Other major releases include Toy Story 2, Inspector Gadget and The Little Mermaid II: Return to the Sea.