According to Variety magazine, DVD Express has inked a $6.6 million portal deal with Web destination site and popular search engine Alta Vista and One Zero Media, which provides entertainment-oriented content for the Website. The agreement gives DVD Express prime real estate on Alta Vista, and links Websurfers directly to the online DVD store.
DVD Express also signed deals with Gateway Computers and Toshiba America Consumer Prods. that will give away coupons offering $10 and $20 discounts for DVDs and DVD-ROMS. The coupons will be included with new Gateway computers and Toshiba DVD players.
DVD Express, founded by Michael Dubelko — a partner in Stephen Cannell’s Cannell Studios — was founded in late 1996 and opened for business in April of 1997. Dubelko estimates that the company will generate more than $16 million in revenue in 1998, its first full year of operation, despite the sub-1% penetration of DVD players in American households. Sales at DVD Express have already made the Hollywood-based company the largest online retailer in the video category.