'Strangers on a Train' Set for Remake

Crime writer Patricia Highsmith, largely neglected by Hollywood until her death in 1995, has seized the imagination of a new generation of filmmakers. In the wake of "The Talented Mr. Ripley" and the forthcoming John Malkovich thriller, "Ripley's Game," husband-and-wife producers Arnold and Anne Kopelson are developing a new adaptation of Highsmith's first novel, "Strangers on a Train," for Warner Bros. David Seltzer ("Dragonfly") has delivered a script.

The book's first screen incarnation in 1951 was the landmark Alfred Hitchcock thriller with Farley Granger as Guy Haines, a tennis pro awaiting a divorce from his wife, and Robert Walker as Bruno Antony, a cultured eccentric who concocts a plan to trade murders with Guy. Bruno will kill Guy's wife, provided Guy kills Bruno's father.

Pic was remade in 1969 as "Once You Kiss a Stranger," directed by Robert Sparr, and later served as inspiration for the Danny DeVito black comedy, "Throw Momma From the Train."

But Arnold Kopelson, who's been developing the project for seven years, says his version, tentatively called "Strangers, " is not a remake, per se, but a reconceptualization of the novel.

"We're very excited about working with David Seltzer," Kopelson said. "He's fashioned two spectacular characters. The Bruno character is far more evil than one would have thought, based on the original movie."

Though Highsmith enjoyed widespread recognition in Europe, her novels remained intermittently out of print in the U.S. much of her lifetime.

But those qualities that once made them unfashionable -- shape-shifting criminals of ambiguous sexual orientation who insert themselves into other people's lives and kill without reason; the sharp critique of suburban America; and the blurring of boundaries between normal and abnormal psychology -- now have a contemporary cachet.

At Warner Bros., the studio that produced Hitchcock's version of the novel, senior veep of production Bob Brassel is overseeing the project.

Meanwhile Highsmith is enjoying a renaissance in print. The first three Ripley novels have been reissued in a hardcover set by Knopf. Norton has published a selection of her stories. And St. Martin's Press has commissioned a biography of Highsmith by Joan Schenkar that's scheduled to appear in three years.

Valhalla Motion Pictures and Chaos! Comics

Ever since the Man of Steel defended Metropolis in the first "Superman" movie, comic books have engendered a steady stream of Hollywood franchises.

But as studios have picked over the brand-name Marvel and D.C. characters, producers have turned to smaller comicbook publishers, hoping they'll find the next "Men In Black" -- a story that began life as a limited-release, black-and-white comic -- in the galaxy of new comics characters that haven't yet hit the mainstream.

One such publisher is Chaos! Comics, which specializes in the supernatural, and via Innovative Artists, has recently begun setting up projects around town.

Valhalla Motion Pictures topper Gale Ann Hurd has optioned "Jade," a Chaos! comic about a vampire who's also a member of a Shanghai crime family.

The project, which development exec Tracy Mercer brought to Valhalla, will be overseen by the shingle's president Barbara Boyle. Hurd plans to attach a screenwriter before submitting the project to a studio.

The comic that put Chaos! on the map is "Evil Ernie," a book about a zombie teenager who controls the dead. Chaos! founder Brian Pulido, who created both "Jade" and "Evil Ernie" first conjured "Ernie" in a screenplay called "Psycho Night" that never went into production. Pulido is now planning to direct his own $5 million live-action version of it.

Scott Rudin will help steer the Lemony Snicket books into production

Scott Rudin will help steer the Lemony Snicket books, "A Series of Unfortunate Events," into production.

He's come on board to produce the acclaimed kids series written by Daniel Handler. The project is in development as a Nickelodeon Movies production at Paramount.

The books, which revolve around the misadventures of the Baudelaire orphans and the evil Count Olaf, who has designs on their considerable inheritance, have become a huge kids publishing phenomenon, selling over 4 million books in the U.S. alone in less than three years.

But the surreal narrative, with its elements of Edward Gorey and Roald Dahl, may not be an obvious movie, and Rudin's participation is likely to give it momentum. It's the second time this year a studio has hired Rudin to help ferry a difficult literary project to the screen.

"A Series of Unfortunate Events" is "a precious and important property for Nickelodeon," said Nickelodeon Movies prexy Albie Hecht. "One of the things we sought is a great partner."

Last month, New Line brought Rudin in to produce Dave Eggers' best-selling memoir, "A Heartbreaking Work of Staggering Genius."

The Lemony Snicket project is a co-production of Scott Rudin Prods. and Nickelodeon Movies.

Bob Dylan, Masked & Anonymous

Taking on his first acting role in 15 years, Bob Dylan will star in Intermedia Films' tentatively titled "Masked & Anonymous," the big-screen directorial debut of television writer-director-producer Larry Charles. The project is aimed to go into production in July.

Written by Rene Fontaine and Sergy Petrov, "Masked" is based on the unpublished short story "Los Vientos del Destino," written by Enrique Morales. It follows the story of Jack Fate (Dylan), a wandering troubadour who finds his destiny. The film ends with Fate playing a concert.

Dylan has agreed to bring to the project his own music, which he will perform in the film. A strong soundtrack featuring Dylan's music is expected to accompany "Masked." It is not yet known whether Dylan will write original material or use existing songs.

Charles, best known for his TV work on such shows as "Seinfeld," "Mad About You" and "Curb Your Enthusiasm," will produce the film with Intermedia co-chairman Nigel Sinclair. The duo had been developing the project for nearly a year before Dylan agreed to come aboard, subject to his schedule.

"The character of Jack Fate is not unlike Bob Dylan's persona, so he is a natural for this role," Sinclair said. "This has been Larry Charles' passion project, and we feel fortunate to be associated with this."

Meg Lieberman is casting "Masked," said to be garnering attention from high-profile talent around town.

Dylan most recently appeared onscreen in the 1987 Lorimar Home Video feature "Hearts of Fire," co-starring Rupert Everett. Before that, he co-wrote, directed and starred in the 1978 feature "Renaldo and Clara." Dylan made his acting debut in Sam Peckinpah's 1973 film "Pat Garrett and Billy the Kid."

Dylan won an Academy Award last year in the best song category for "Things Have Changed," from the soundtrack to "Wonder Boys." His latest release for Columbia Records, "Love and Theft," is nominated for three Grammy Awards, including album of the year and contemporary folk album.

Master P and Lil' Romeo have teamed together on "Shorty,"

Father-and-son rappers Master P and Lil' Romeo have teamed together on "Shorty," a feature film set up at Universal Pictures in which Lil' Romeo will star and that Master P will produce with studio-based Marc Platt. The project is on a fast track.

Written by Dallas Jackson, "Shorty" is about a midget alien stranded in a Los Angeles 'hood. He becomes a rapping, hip-hopping partner with a 12-year-old (Lil' Romeo) who wants to win an MTV talent contest.

Marc Platt Prods.' Gregory Lessans and Adam Siegel brought the project to Platt. Master P and Platt partnered on the project and took it to Universal, whose record division, Universal Records, has a deal with Master P's indie record label No Limit.

Master P and Lil' Romeo's newly signed managers at Artists Management Group were instrumental in putting together the elements of the deal.

"We are blown away by the level of versatility and talent both Master P and his son, Lil' Romeo, exhibit in everything they do," AMG manager Michael Menchel said. "P and Romeo have been extremely successful in music, film and television so far, and AMG is thrilled to be a part of their careers moving forward. 'Shorty' has huge cross-over potential, and Universal is the perfect home for it."

Master P is the owner and founder of No Limit, which has grown into a brand that includes No Limit Clothing, No Limit Toys, PM Properties, the retail shoe chain Master Feet and No Limit Films. As an actor, Master P has appeared in such films as "Gone in 60 Seconds," and "The Player's Club." He next appears in Miramax Films' "Undisputed."

Twelve-year-old Lil' Romeo's self-titled debut, with the debut single, "My Baby," earned him 2001 Billboard Music Awards for rap artist of the year and rap single of the year. His sophomore album, "Game Time," will be released June 4. Lil' Romeo is set to shoot the pilot "Pieces to the Puzzle" for Nickelodeon, in which he'll star with his dad.

The duo continue to be repped by Holly Davis-Carter at Agency West and attorneys Darrell Miller and Roger Pliakas of Miller & Pliakas. Jackson is also repped by AMG and attorney Karl Austen

Stealing Sinatra, With David Arquette, William H. Macy For Showtime

Showtime has given the green light to "Stealing Sinatra," a film about the 1963 kidnapping of Frank Sinatra Jr. to star David Arquette, William H. Macy and Ryan Browning as kidnappers Barry Keenan, John Irwin and Joseph Amsler, respectively, and Thomas Ian Nicholas as Sinatra.

Ron Underwood ("City Slickers") is set to direct the movie from a script by Howard Korder (Lifetime's "My Little Assassin"). David Collins and Ron Ziskin are executive producing the film, which is scheduled to begin production next week in Vancouver, British Columbia, and is being eyed for a possible theatrical distribution before its premiere on Showtime.

The story of the kidnapping of Frank Sinatra's son was back in the headlines last week when the California Supreme Court overturned the state's "Son of Sam" law, which has prevented criminals from selling their stories for profit.

The ruling was made after Keenan challenged the 1983 law that was keeping him from selling a film project based on his life story to Columbia Pictures. That project, based on a 1998 article in Los Angeles' New Times, was passed on by Columbia and is being shopped around by producers Jenno Topping and Betty Thomas.

Showtime's "Stealing Sinatra," aka "Come Fly with Me," is a different project that has been in the works for several years and was developed originally as an independent feature. Macy has been attached to the project from the get-go through his relationship with Korder. The two worked together on "Lip Service," which Korder wrote and Macy directed.

Hours before he was set to take the stage at a concert in Lake Tahoe, Nev., Sinatra, then 19, was kidnapped from his hotel at gunpoint by Keenan and Amsler. Sinatra was then brought to Los Angeles and held for four days by Keenan, Amsler and Irwin before a $240,000 ransom was paid by his father.

Three days later, Irwin's brother tipped the authorities about the kidnapping, and the three kidnappers were immediately rounded up and convicted. Both Arquette and Macy have been successfully straddling the worlds of indies and big studio movies.

Arquette recently wrapped production on "A Foreign Affair." He will next appear in "Eight Legged Freaks" and Tim Blake Nelson's "The Grey Zone."

Arquette, whose credits also include "Never Been Kissed" and the "Scream" franchise, is repped by the Gersh Agency and Lighthouse Entertainment. Macy was nominated for an Oscar for the Coen brothers' dark comedy "Fargo." He recently starred in "Jurassic Park III," "State and Main" and "Focus."

Macy, who next co-stars in "Welcome to Collinwood" and Robert Altman's "Voltage," is repped by Writers & Artists. Browning's feature credits include "Losing Grace." His upcoming projects include "An Ordinary Killer" and "Rent Control."

Nicholas is best known for his role as Kevin Myers in the two "American Pie" movies. He will next appear in "The Rules of Attraction" and "Halloween: The Homecoming." He is repped by the Osbrink Talent Agency, Mosaic Media Group and attorney Kevin Kelly.

"Trouble in Toyland" a mid-six figures for writer Richard Nathanson

Columbia Pictures has paid mid-six figures for writer Richard Nathanson's action-adventure comedy spec "Trouble in Toyland" for studio-based Ricky Strauss and his Ricochet Entertainment.

The project, described as "Home Alone" meets "Spy Kids," is about five 12-year-olds who are accidentally locked in a toy store overnight. When a band of thieves infiltrates the store as part of a larger crime scheme, the kids use the gadgets and toys in the store to bring the criminals down.

Ricochet's director of development Lisa Ullman brought the project to the company and will oversee. Columbia senior vp production Andrea Giannetti is overseeing "Trouble" on behalf of the studio, reporting to production president Peter Schlessel. Columbia also is negotiating with David Fuhrer to produce the film along with Ricochet.

Nathanson is repped by ICM's Brian Sher and Overview Management's Marisa Johnston and Chris Ryan. He began his career as a playwright and then segued into children's television animation. He most recently was a writer for Penn & Teller's various cable specials.

Strauss next executive produces Columbia's "The Sweetest Thing," starring Cameron Diaz. He also is developing the New Line Cinema thriller "Tryst."

Premiere Sets Slate of First Film Releases

Mitchell Goldman, former New Line Cinema president and chief operating officer of distribution and marketing now chairman and chief executive officer of The Premiere Marketing & Distribution Group LLC, (TPM&DG) has set its first slate of 10 releases, including films starring Bill Murray, Sigourney Weaver and Kim Basinger. For a set distribution fee, the company provides distribution on 2,000 U.S. screens for mainstream product, plus a minimum $16 million in marketing. The benefit for financiers is that they hang on to their film copyrights.

 The first films on The Premiere Group's schedule are the teen comedy "Slap Her, She's French," starring Piper Perabo ("Coyote Ugly"), that opens June 7th; and the action-drama "Madison," starring Jim Caviezel ("The Count of Monte Cristo"), that opens August 23rd. Both will have a wide national release.

"We were truly overwhelmed by the sheer number and quality of submissions that we have received since launching the Company, and narrowing them down to this first group was no easy task," Goldman said. "We are delighted that the producers of these films have entrusted their projects to us, and in turn, I can readily assure them that we will devote our full resources to them."

Barry Glasser, the Company's executive vice president of acquisitions, added: "The response to The Premiere Group by both the agencies and filmmakers has been exceptional. It's apparent that they recognize us as a place where they can get a fast reaction to their projects at the script stage or during production, backed by a distribution commitment unlike any other in the industry."

"`Slap Her,' `Madison' and all of the other mainstream films that we are announcing today," Goldman noted, "meet The Premiere Group's mandate of having the capability to play on a minimum of 2,000 screens and warrant a minimum of $16 million in pre-opening and first week print and advertising expenditures."

Four of the six films that The Premiere Group will distribute during its first year of operation are:

"SLAP HER, SHE'S FRENCH." Piper Perabo ("Coyote Ugly") and MTV's Jane McGregor star in this "`All About Eve' in high school" teen comedy about the most popular girl on campus whose status is jeopardized by the seemingly innocent but diabolical French exchange student who moves in with her and takes over her life. Directed by Melanie Mayron and written by Lamar Damon and Robert Lee King, the Constantin Films production will premiere on June 7th. (PG 13)

"MADISON." Set against the high-speed sport of hydroplane boat racing, this action packed film stars Jim Caviezel ("The Count of Monte Cristo," "Frequency," "The Thin Red Line"), Jake Lloyd ("Star Wars: The Phantom Menace"), Mary McCormack ("K-PAX") and Academy Award® nominee Bruce Dern. William Bindley directed from a screenplay he co-wrote with Scott Bindley. Produced by Martin Wiley and William Bindley, with Carl Amari, Chris Dennis, Roy Millonzi and Steve Salutric serving as executive producers. August 23rd release. (PG)

"TALES NOT TOLD." Debra Hill (producer and co-writer of the "Halloween" series, "The Fisher King" and the "Escape From New York" series) makes her directorial debut with this thriller love story of the terrifying supernatural obstacles that two people must overcome to prove the depth of their love. Written by Colin Paolo. From Samuelson Productions and Winchester Films, produced by Peter and Marc Samuelson ("Arlington Road," "Wilde"), with Gary Smith and Hadeel Reda as executive producers. January 10, 2003 release.

"AURORA ISLAND." Oscar-winner Kim Basinger ("L.A. Confidential"), Joaquin Phoenix ("Gladiator") and Mandy Moore ("The Princess Diaries," "A Walk to Remember") star in this sensual and provocative romantic drama about a handsome drifter in a Southern coastal resort who becomes involved with a mother and her daughter. The romantic triangle leads to a surprising conclusion as the young man's secret motive has explosive consequences. Directed by Martha Coolidge ("Rambling Rose," "Lost in Yonkers") and produced by Steve Perry ("Undisputed," "Lethal Weapon 2," "3" and "4," "Speed 2," "Die Hard 2"). February 21, 2003 release.

The Premiere Group will shortly announce an additional 14 films that will comprise its inaugural and second year schedules. All will have exciting concepts with notable talent and filmmakers attached. Of these, the films listed below have already been committed. Release dates are yet-to-be determined.

"THE LEGEND OF MULAN." The most expensive English-language film ever produced in China (a budget equivalent to $80 million), this is the epic true story behind the myth of Mulan, the legendary 6th century Chinese peasant girl who takes the place of her ailing father and disguises herself as a male soldier to fight the invading Huns. Spectacular action sequences include 7,000 horse soldiers fighting in snow-covered mountains outside the Winter Palace. Stanley Tong (Jackie Chan's "Rumble in the Bronx") directs and produces and Chang Chen (the bandit in "Crouching Tiger, Hidden Dragon") plays the male lead in this sweeping saga.

"NOT HUMAN." Steve Haberman (writer of "Life Stinks" and "Dracula -- Dead and Loving It") co-wrote with Rudy DeLuca and is also directing this provocative and frightening horror thriller, in the genre of "Alien" and "The Fly," about scientists in a three-month-long experiment who are trapped in a sealed biodome with a genetically created being who takes human female form. The Brooksfilm ("The Fly," "The Fly 2," "Elephant Man") production will be produced by Dean Goodhill. Jonathan Sanger ("Vanilla Sky," "Elephant Man") and Ed Elbert ("Anna and the King") will supervise for Brooksfilm.

"ONE WAY SPLIT." The producers are in discussion with Hugh Jackman ("X-Men," "Swordfish," "Kate and Leopold") to star in this action thriller and love story inside a crime story about a daring "Ocean's Eleven"-style heist that unravels when the thieves discover each other's past and start questioning each other's loyalty. Julian Simpson ("Cutting Edge," "The Criminal") directs and Christopher Johnson ("The Criminal") produces and H. Michael Heuser/Storm Entertainment executive produces.

"PREACHER." Screen version of the popular cult comic book about a preacher who finds himself in the middle of an apocalyptic war between angels and the devil on the redneck back roads of Texas. Directed by Rachel Talalay ("Tank Girl," "Nightmare on Elm Street 6") and produced by Rupert Harvey ("Bones," "Plunkett & Macleane," "Pump Up the Volume," "Critters") from a screenplay by the comic book's creator, Garth Ennis. H. Michael Heuser of Storm Entertainment and Tom Astor ("Gorillaz," "Tank Girl") will executive produce.

"THE PRINCE." A stylized action drama in the vein of "The Fast & The Furious" and "Training Day" about a cop forced to go undercover in the belly of San Francisco's world of pimping and pandering and ingratiate himself with dangerous drug dealers. Written and directed by Preston Whitmore ("The Walking Dead," "Fled," "Lockdown") and produced by Carl Craig ("Players Club," "House Party," "Mo' Money") and Robert Johnson ("Civil War," "All Axcess," "The Show"), the film will have major stars attached. Interscope Records will be distributing the soundtrack that will feature platinum-caliber artists.

"THE WEDDING CONTRACT." The Company is currently in negotiations with producer Robert Katz for U.S. distribution rights to this hilarious action comedy set against the wedding of the son of a straight-laced Midwestern couple and the daughter of a New Jersey Mafia don that erupts into chaos. The ensemble cast includes Bill Murray, Sigourney Weaver and Isabella Rossellini. Robert Greenhut (producer of "Hannah and Her Sisters," "Working Girl," "A League of Their Own," "Bullets Over Broadway") directs, and Katz, Greenhut and Arne Glimcher produce from a screenplay by Howard Franklin ("Romancing the Stone," "Someone to Watch Over Me," "The Man Who Knew Too Little").

Commenting on her impending relationship with The Premiere Group, director Debra Hill ("Tales Not Told") stated: "I am thrilled to be directing one of the films that Premiere will distribute in its inaugural year, and am excited to have partners like Winchester and producers like Peter and Marc Samuelson who have as much belief in this film as I do."

"The Premiere Group's involvement was the vital ingredient that enabled us to green light our picture," said "Mulan" producer-director Stanley Tong. "They offer a unique opportunity for distribution in the North American market which is extremely important to an international filmmaker."

"Madison" director William Bindley noted: "Following the screening of our film at Sundance, The Premiere Group stepped forward with the guarantee of wide distribution and a comprehensive long-range marketing plan in which we have been participating at every stage of its development. They are a boon to independent producers ... our film could not be in better hands."

"New sources of quality motion pictures are critical to the continued growth of theatrical exhibition in the United States and Canada," said Travis Reid, president of Loews Cineplex Theatres North America. "I'm delighted that The Premiere Group will soon begin to deliver a steady stream of highly marketable product to our theatres. We at Loews Cineplex look forward to working with Mitch and his talented colleagues in presenting their slate of films."

"Movies with broad audience appeal are the life-blood of our industry," said Richie Fay, president of AMC Theatres. "These first films from The Premiere Group seem to have the inherent elements that should attract large numbers of patrons to our theatres."

With offices in Los Angeles and New York City, The Premiere Marketing & Distribution Group releases theatrical mainstream motion pictures in the United States and Canada on a scale comparable to the major studios, guaranteeing producers a minimum of 2,000 screens and a minimum of $16 million in pre-opening and first week print and advertising expenditures for each film.

Only motion pictures that warrant such broad distribution are considered for The Premiere Group's release schedule. The Company expects to distribute six films in its first year of operation, and 12 to 14 films annually thereafter.

The Premiere Marketing & Distribution Group, Linda Goldenberg, 818/455-0300, lgoldenberg@thepremieregroup.net

Newman & Company, Al Newman, 818/784-2130, asn@newman-co.com

MGM, Viacom Networks Ink 15-Film James Bond Deal

Three Viacom Inc.-owned networks -- TNN, CBS and UPN -- have banded together to buy exclusive two-year television rights to the first 15 James Bond motion pictures from MGM.

The parties declined comment on the deal, but industry sources say Viacom will pay $2 million per title, or a total of $30 million for the pact. The titles become available this fall after completing their runs on ABC and on TBS, both of which decided not to renew their deals for the Bond pictures.

While CBS and sibling broadcast netlet UPN will have access to the Bond films, industry insiders said cable outlet TNN drove the pact. "If Viacom's the house for this deal, TNN occupies the master bedroom," one source said.

TNN, a general-entertainment cable network that is still playing catch-up with its main competitors USA, TNT and TBS in the Nielsen ratings, plans to engineer a marathon of the first 15 Bonds as a tie-in to the release this November of the new Bond movie with Pierce Brosnan and Halle Berry. The deal gives the TNN, CBS and UPN wide flexibility in scheduling the pics.

The Viacom deal is consistent with CBS' past separate purchases for exclusive broadcast-network play of the most recent Bond movies starring Brosnan. The purchase is the first time that all three of the Viacom networks have bought high-visibility programming in one negotiation.

It's expected CBS could air occasional Bond mini-marathons or use the films to plug scheduling holes. For UPN, the movies represent a major upgrade from the types of theatricals it had been able to afford in the past.

And for TNN, the deal means another major asset in building a new brand identity.

CONTRACT COULD BE MODEL

The MGM contract could also serve as one model for a future theatrical-output deal among the three networks and their sister studio, Paramount Pictures, which has a number of movies that are still available in the first network window, such as "Vanilla Sky," "Zoolander" and "Rat Race."

TNN has pulled in audiences in the last year or so, with such franchises as the two-hour World Wrestling Federation Monday-night "Raw" and "War Zone" and with the nightly repeats of "Star Trek: The Next Generation." Marathons of James Bond movies twice a year on TNN could harvest a bumper crop of viewers.

RATINGS NOT SO GREAT

The ratings of the early Bond movies on ABC in recent weeks have proved disappointing, though for three Saturdays the pictures had to compete with NBC's high-rated primetime coverage of the Salt Lake City Olympics.

ABC had originally planned to schedule the Bond movies in the fourth quarter as backup programming in anticipation of actors and writers strikes, but held them back after the terrorist attacks on Sept. 11.

The 15-title package includes one movie that was not part of the original United Artists releases, "Never Say Never Again," with Sean Connery, made by Warner Bros. in 1983. MGM subsequently bought the rights to the picture.

European DVD market sets new sector records

The meteoric rise in the global popularity and profitability of the DVD format has seen Germany and the UK join the many markets experiencing record business in the sector.

In Germany, the home video industry’s turnover exceeded the Euros 1bn mark for the first time ever in 2001, according to statistics published by the video trade body Bundesverband Video (BVV) collated by the GfK market research institute.

Overall turnover on the rental and sales of DVDs and videocassettes reached a new record of Euros 1.146bn in 2001, 22.7% up on the performance of the previous year and Euros 159.1m more than the cinema sector's total box office of Euros 987.2m.

The BVV reported that business with sell-through DVDs and videos increased by 33% from 2000’s Euros 593.9m to Euros 790.4m last year thanks to the growing popularity of DVDs in the home entertainment sector. Indeed, DVD sales shot up by an impressive 139% - from Euros 170.4m in 2000 to Euros 406.7m in 2001 – which more than compensated for the 9% shrinkage in the sell-through VHS market (from Euros 423.6m to Euros 383.6m).

Moreover, thanks to the DVD, the industry also had cause for celebration in the rental sector as well. Although the number of rental transactions for VHS cassettes slipped by 5% (119.3m compared to 125.5m in 2000), the number of DVDS rented out climbed year-on-year by a staggering 190% to 15m transactions. As a consequence, overall turnover from DVD and video rentals climbed by 5% to Euros 355.9m from 2000’s Euros 340.4m.

Meanwhile, the latest figures from the UK show a supposedly mature market growing by a massive 35% to hit Euros 3.3bn, driven by the rise of DVD. Retail sales for both platforms weighed in at a combined Euros 2.49bn and rentals at Euros 835.2m. In addition, some 4.7 million VCR players were purchased with a total value of Euros 1.1bn and two million DVD players at a cost of Euros 474.6m.

Shrek was the biggest selling video of 2001, with 2.1 million units on VHS and 630,000 on DVD video. Gladiator is the biggest selling DVD video ever, having sold more than 1 million copies across 2000 and 2001.

DVD grew 150% in the sell through sector, while VHS cassettes dropped 4%. The total number of retail videos grew from 18% 114 million in 2000 to 135 million last year.

DVD is also powering up as a rental format. The three fold increase in DVD video rentals to 25 million offset a 9% decline in cassette rental transactions of 162 million, leaving the total volume of videos rented last year to 186 million, the same level as in 2000.

"This time last year the BVA reported 28.7 million video units sold in December 2000 - the best ever recorded. This record was well and truly smashed as total video sales increased by an incredible 20% to exceed 34.3 million units in December 2001," says Lavinia Carey, director general of the British Video Association, provider of the new data.