Movie and home entertainment distributors adopted the DVD format to replace the ubiquitous VHS tape as the primary consumer digital video distribution format. They embraced DVD because it produces superior moving pictures and sound, provides superior data lifespan, and can be interactive. Interactivity on LaserDiscs had proven desirable to consumers, especially collectors. When LaserDisc prices dropped from approximately $100 per disc to $20 per disc at retail, this luxury feature became available for mass consumption. Simultaneously, the movie studios decided to change their home entertainment release model from a rental model to a for purchase model,[citation needed] and large numbers of DVDs were sold.
At the same time, a demand for interactive design talent and services was created. Movies in the past had uniquely designed title sequences. Suddenly every movie being released required information architecture and interactive design components that matched the film's tone and were at the quality level that Hollywood demanded for its product.
DVD as a format had two qualities at the time that were not available in any other interactive medium: enough capacity and speed to provide high quality, full motion video and sound, and low cost delivery mechanism provided by consumer products retailers. Retailers would quickly move to sell their players for under $200, and eventually for under $50 at retail. In addition, the medium itself was small enough and light enough to mail using general first class postage. Almost overnight, this created a new business opportunity and model for business innovators to re-invent the home entertainment distribution model. It also gave companies an inexpensive way to provide business and product information on full motion video through direct mail.