CarMax 1999 Annual Report Download - page 18

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credit or debit card. This entire process takes place with no customer
involvement, and the call never interferes with normal phone usage.
No phone connection is ever required during movie play.
Growing Title Selection. At fiscal year-end, more than 370 Divx titles
were available, with up to 40 titles being added each month. Major
movie studios are making new and catalog titles available for release on
Divx discs. Discs can be purchased at any of the approximately 800
retail outlets nationwide or by ordering from DivxFlix, our on-line
store at www.divx.com.
More Player Brands. The selection of Divx-enhanced DVD players
also continues to grow. Divx was launched in two markets with the
Zenith-Inteq brand players, and the nationwide launch began in early
fall with the availability of RCA players from Thomson Consumer
Electronics. Thomson expanded the market further with the introduc-
tion of ProScan players in time for the holidays. A Panasonic player
was added in early December. By the end of fiscal 2000, we expect to
have a total of eight brands in the marketplace as JVC, Pioneer,
Harman Kardon and Kenwood add Divx-equipped players to their
DVD lines.
BUILDING THE BUSINESS – BEHIND THE SCENES
As with all our businesses, we are deeply committed to ensuring that
Divx works efficiently and effectively behind the scenes. And so, we
have devoted significant resources not just to product development,
but also to systems that support billing and customer service and the
systems that support retailers carrying the product.
In April 1998, we opened our Customer Satisfaction Center in
Rocky Mount, N.C. This center, which has the capacity for more than
500 customer service Associates, assists Divx customers with the
registration of their players and provides general help and trouble-
shooting on any customer issues.
In May 1998, we opened a distribution center in Jackson, Tenn.
That center distributes discs to retailers and directly to customers
ordering through DivxFlix.
In January, we launched an on-line retail distribution program,
called divxwholesale.com for Divx discs. This program allows smaller
retailers to quickly and efficiently order new Divx inventory.
Finally, we developed an interactive kiosk that can be tailored to
the needs of individual retailers selling Divx-enhanced DVD players
and Divx discs. These kiosks are designed to provide a full explanation
of the Divx home movie system to consumers shopping in less service-
intensive retail outlets.
CONCLUSION
Divx is off to an outstanding start. As we look into fiscal year 2000
and beyond, we believe this new business opportunity fits our long-
standing formula for success: by offering consumers an option that
improves their lifestyles, we can build a strong business that generates
attractive returns for shareholders.
DIVX Off to an outstanding start
16 CIRCUIT CITY STORES, INC. 1999 ANNUAL REPORT