DVD (Digital Video Disc) is attempting to become the next widely-recognized format in America. It started small, almost inconspicuously, cropping up here and there in record and video stores. At first, many doubted that it would survive, and would soon go the way of Betamax or the eight-track. But DVD has gained a foothold in the living rooms of America, and seems poised to take its position as the mass-market "high-end" video technology in the United States. (At least until someone invents something new).
Anime fans have long been devout videophiles, as can be attested to by the number of fans who own LD players (or who own LDs even if they don't own LD players). With the rise of DVD, LDs in the United States are fast becoming an endangered species. In this article, we will attempt to explore the DVD format, and its ramifications on the Anime video market.

DVD packaging jobs are much smaller than their VHS or LD counterparts. Shown here is a DRAGONBALL Z title in a CD-sized case.

Movies on CD? No Way!
That was the general response with which DVD was greeted in the United States except for a select few, mostly video enthusiasts. A combination of factors needed to be overcome to gain DVD any sort of market share. The first and most obvious consideration was the price: why pay over $500 for a machine that does essentially the same thing as a VCR (but can't record) or a laserdisc player? While the pricing for the hardware wasn't reduced significantly, software was made very affordable. Thus, DVD videos are priced at prices competitive to VHS tapes and usually cheaper than laserdiscs.
The second way to entice the buying public was the inclusion of "extras" and the promotion of DVD's interactivity. DVD opened up a whole new world and allowed for movies to be more than just something one watched. Some DVDs come with online menus that list all the other options available, including viewing stills from the movie, preproduction art, and other things. Of course, the extras varied from title to title.
DVD's main marketplace competitor wasn't really LDs, but VHS. After all, more homes in America have VCRs than LD players, which seem to be reserved for true videophiles (which include a great many anime fans, of course). Since DVDs were smaller than LDs and priced more affordably, they appealed to retailers because they consumed less precious shelf space and, if the format was successful, would have a faster sell-through. As a result, many places that carry LDs now carry DVDs as well. More importantly, however, DVDs started showing up in places where LDs weren't. With such a seemingly overwhelming marketplace presence, DVD developed a strong foothold in the market.
And, like it or not, this has impacted the laserdisc market. Titles on laserdisc do not sell as well as they used to; in fact, some companies have started to scale down their LD releases in favor of DVDs. This means that the LD market in the United States, which was never especially large to begin with, is most likely going to get smaller.

Pioneer plans to phase out its laserdiscs in favor of DVDs. The DVD cover of ARMITAGE III is shown.

But What Does It All Mean?
This means, of course, that many US anime companies are simply not interested in releasing titles on LD any more, since they feel that the market is moving away from the format. And in fact, over the last couple of years, many US anime distributors have moved away from laserdisc pressings, citing poor sales and low interest as the reasons why.
In fact, even Pioneer seems to be succumbing to this trend. At Anime Expo 1998, Pioneer Entertainment announced that LD releases of their current and upcoming titles are waning because, quite simply, it's not very profitable to produce and sell them anymore. While they have not ruled out pressing LDs entirely, it is certain that the glory days of Pioneer's releasing all its titles on LD is now a fixture in the rear view mirror. And if Pioneer, which has made its bread and butter pressing LDs, is concentrating more energy and resources on the new DVD format, it is a signal that cannot be ignored.
However, it should be noted that while DVD seems to have gained a mainstream foothold in the United States and is slowly squeezing laserdiscs out, Japan is a different story. DVDs are moving much more slowly there, due to the fact that such a large percentage of the population owns LD players (in comparison to the US). So, while DVD is progressing forward in Japan, it is not having the immediate effect on the video industry that is seen in America. New releases still come out on the standard LD and VHS formats. DVD release is often added later. For example, looking through the most recent NEWTYPE, most ads for new titles do not even list DVD releases. So anime fans will at least be able to buy import LDs for some time, it appears.