Just eight months after launch, consumer interest in DualDisc, the two-sided music product with a CD on one side and DVD on the other, continues to gain momentum. Feedback from more than 20,000 DualDisc consumers across the country (United States – HFR) demonstrates strong enthusiasm for the product across all genres, styles and customer demographics.

Research data was obtained from online surveys and was limited to customers who had purchased a DualDisc during the first four months of 2005. The results confirm that despite the rapid penetration of digital music players, consumers consider DualDisc a tremendous value.

Some of the highlights of the data include:

• 94% indicated they would recommend DualDiscs to others
• 96% of respondents are interested in buying DualDisc versions of new releases
• 89% are interested in DualDisc versions of catalog CDs
• 78% believe that the additional features offered on DualDisc will make them want to buy more pre-recorded music
• 80% plan on purchasing DualDiscs of CDs they already own

“Our members are very encouraged by both the sales results and consumer response to DualDisc,” said Jim Donio, president of the National Association of Recording Merchandisers (NARM), an industry trade group that serves the music retailing community. “We believe this new physical entertainment product not only has the potential to change the way consumers experience and value music, but can contribute significantly to the growth of our marketplace. This initial research is helping us learn more about how we can all maximize the DualDisc opportunity going forward. NARM, in fact, supports continued efforts to identify and analyze consumer behaviors and preferences regarding DualDisc, as well as to communicate its benefits. We also urge all music companies to support as robust a release schedule as possible to satisfy growing demand for DualDisc.”

DualDisc is the first entertainment product to combine music, film and video on a single, two-sided disc. Over the last year, consumers bought more than three million DualDiscs by such artists as Simple Plan, Bruce Springsteen, Rob Thomas, Nine Inch Nails, Blondie, Lauren Ellis, Jennifer Lopez and The Grateful Dead. More than 200 individual titles are expected to be on the market by the end of 2005.

DualDisc is a streamlined, two-sided disc comprised of a typical CD on one side and music and video on the DVD side. Every disc from every label contains a full-length album on the CD side. But the innovation is really stored on the DVD side, where documentaries, promotional videos, stereo and often 5.1 surround sound of the full-length album exist alongside a host of other additional special features. Here on the DVD side of a DualDisc a fan can connect with an artist and an artist can highlight a new dimension to his or her music.

By combining CD and DVD on a single two-sided disc, DualDisc capitalizes on the overwhelming popularity of DVD music videos, which have grown exponentially over the course of the past three years. Moreover, DualDisc meets consumer demand for greater versatility and value in entertainment products while providing artists with an innovative avenue for creative expression.