The basis for the DVD sprung from the release of the compact disc in 1985. From there, entertainment companies saw the potential for increased storage space on an entity that could replace VHS the way CDs nullified cassettes.
The increase of technology in the mid-nineties made the marketplace for DVDs highly lucrative. Commercially released in 1997, the DVD was a bit slow to catch on, but when it did, VHS became a format of the past.
The DVD forum is comprised of several corporate giants that helped contribute to the manufacture of the DVD and remains the authority on modifications to their creation. They are, in no order of importance: Time Warner, Sony, JVC, Pioneer, Phillips, Matsushita, Toshiba, Hitachi, Thomson and Mitsubishi.
The production of DVDs was stalled briefly because major competitors wanted to avoid a format war that would ultimately leave some companies at a loss in millions of dollars worth of marketing, advertising, and manufacturing. Additionally, the transition from VHS to DVD would have been too quick if the DVD forum had released it immediately, considering the VHS format had been around for little over a decade.
The function of the DVD is to provide a more efficient means to view media. Sleek and compact in comparison to VHS, it was not only a visual improvement, but also a device with a higher data storage capacity.