Return to Virginia Business - August 2002

Bye-bye VHS?

Couch potatoes everywhere have been wondering when the day would finally come when all of their dozens, if not hundreds, of movies, TV shows and sports events recorded on VHS cassettes would be in jeopardy. That day is now.

In a headline-grabbing move that has jarred the movie-watching world, Richmond-based Circuit City Stores Inc. has declared venerable VHS cassettes obsolete. The tapes have been the staple of home entertainment since they were introduced in the late 1970s. But in mid-June, Circuit City said it would no longer sell VHS cassettes of movies in favor of more modern DVD movies.

Circuit City will still sell VCRs that play VHS cassettes along with blank tapes, but VHS movies will be banished from the chain's 605 stores worldwide. "We're just responding to what our consumers want," says company spokesman Bill Cimino. Eliminating VHS will free up more space at the stores for newer items.

Dumping the tapes has not been met with universal applause. Rival chain Best Buy Co. hasn't decided what to do about VHS. Critics complain that Circuit City might have moved too soon. One problem with the DVD systems is most current versions can't record programs from televisions and, while the digital quality is supposed to be of a higher grade, that may not always be the case.

Cimino says that DVDs keep getting better and better. "The picture resolution is twice that of VHS and the sound is CD quality," he notes. "If you rig these up to a digital TV you might have a leap in quality." Meanwhile, he says, movie buffs with big VHS collections can still buy dual DVD/VHS players from Circuit City for about $170 and watch to their heart's content. Maybe, but the handwriting is on the screen and all of those boxy video cassettes may soon end up in the closet with those eight-track tapes and Farrah Fawcett posters.

- Peter Galuszka

Return to Virginia Business - August 2002