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DEG Forms Global Alliance

Berlin — The Digital Entertainment Group (DEG) will ally with its European counterpart to form a “working association” to promote DVD and high-definition products in the United States and Europe, the groups announced at the IFA tradeshow, here, today.

The U.K.-based Digital Entertainment Group Europe (DEGE) and U.S.-based DEG will share sales figures and develop educational resources for consumers and retailers. The first such initiative will be the HDTV Guide, which was originally developed by the DEG for the U.S. market and has since been adapted for DEGE’s target market.

“It’s a valuable partnership for us because the U.S. market gives us a good perspective on future trends in Europe,” said Yves Caillaud, Warner Home Video senior VP.

A formal alliance between DEG and DEGE will provide a “global perspective” in the development of HD video and DVD products, said Amy Jo Smith, DEG executive director. Despite the rancorous HD format war and the prospects for video downloading, packaged media is not going away, Smith said. “It represents an enormous source of revenue, and consumers show a strong preference for it,” she said.