DVDs Spin Past VHS Tapes in Rentals

Are VHS tapes about to join vinyl albums in the dustbin?

In the latest sign of the rise of digital media, weekly DVD rentals exceeded videocassettes last week for the first time, according to the Video Software Dealers Assn. The trade organization said an estimated 28.2 million digital videodiscs were rented for the week ended June 15, outpacing 27.3 million VHS rentals.

The erosion of videocassettes has been a fait accompli since DVD players became the fastest-selling home electronic device in history. The popularity of DVDs has prompted rental chains, including Viacom Inc.’s Blockbuster, to begin to phase out tapes.

The result has been a transformation of entertainment economics -- some hit films now enjoy first-weekend disc sales that beat their box-office openings.

Sony Pictures Entertainment’s “Spider-Man,” for example, rang up more than $190 million in DVD sales on its first weekend, compared with record ticket sales of $115 million its first weekend in theaters.

DVD sales and rentals have become so lucrative for Hollywood studios that major record labels -- their CD sales flagging amid rampant online piracy -- have been rushing to capture the windfall, cranking out music DVD titles featuring music videos and concerts, sometimes marketing them alongside CDs.

In spite of the DVD boom, studio executives say the format shift hasn’t made the videocassette obsolete.

“You’ve got VHS players in 90 million households,” said Steve Feldstein, senior vice president at Fox Home Entertainment. “It’s not going away anytime soon. For consumers to have two viable options to enjoy entertainment in their homes is a win for everyone, from the studios to retailers and ultimately the consumer.”