Hong Kong on-line retailer DVDshelf.com predicts it will sell $4 million worth of digital versatile disk (DVD) and video compact disk (VCD) movies by the end of the year. The six-month-old Internet shop developed by technology firm ITOK Technologies sold $800,000 worth of disks last month and plans to sell $25 million worth of merchandise next year, according to marketing manager David Ho. With estimated monthly expenses of just $82,000 on staff and site promotion, DVDshelf expects to break even by the end of the year. DVDshelf's prices are not lower than those at bricks and mortar shops in the SAR. Mr Ho says they are comparable with prices at shops in Mongkok, not including delivery charges. Mr Ho attributes DVDshelf's success to its large selection -it claims 8,000 movie titles now, with about 100 added each week - and, by on-line standards, fast delivery time. He says Hong Kong buyers can expect delivery within three days, plus an extra day or two if the movie must be sourced from distributors. Buyers can also visit ITOK's store in Kwun Tong to pick up products. Overseas buyers can expect delivery within a week, he says. The company has been advertising on local Chinese-language Web sites as well as television. The site sells 70 per cent of its products to Hong Kong consumers, with the remaining 30 per cent going to North America and Britain. Local buyers tend to buy VCDs, while overseas buyers prefer to buy DVDs. The site is written in Chinese, but an English-language version will be up within the next two months, Mr Ho says. To hasten delivery time to customers outside Hong Kong, DVDshelf plans to create a storage centre in Britain. Competitors of DVDshelf.com include Vancouver-based AsiaOne.com, which officially launched last week, and SAR-based Chinese Books Cyberstore, which sells mostly books along with some music, but plans to broaden its product mix. ITOK was talking to potential investors about selling a minority stake in a spin-off, DVDshelf.com, Mr Ho said. DVDshelf.com relies on IBM technology - including the DB2 database and the Net.commerce e-commerce software - to build its site. Mr Ho said it planned to add auctions for second-hand DVDs to the site, too.