LV entertainment, convention industries boost video firms

Phil Levine

Monday, May 15, 2000 | 10:52 a.m.

Al Caudullo's face wasn't among those featured on the big video screen outside this year's Academy Awards presentation.

But thanks to his company's high-tech handiwork -- including a large video screen -- millions of movie fans were able to watch Hollywood's finest parade into this year's Oscar ceremonies.

Caudullo, along with wife Cindy, own and operate Las Vegas-based Diversified Video International. The company provides a wide range of video monitors, screens and walls, and clients span the gaming, film and commercial retail sectors.

Providing video displays for the world's most-watched award ceremony is a far cry from the Caudillos humble beginning doing electronic repair work and related labor jobs.

"Our initial work started out of a spare bedroom and then grew to our garage," Caudillo says with a smile.

Today, 14 years after he started his own business, DVI performs work nationwide. Caudillo estimates his company's revenue could reach $3 million this year.

"This is shaping up to be a much better year than last year was," he said. "After a really strong 1998 -- our revenue was well over $2 million that year -- we came in around $1.5 million last year.

"That was primarily due to the Y2K scare. Many potential clients were reluctant to make major electronic purchases because of Y2K-related concerns."

Caudillo says that during its first eight years of operations, his company grew primarily based on word of mouth.

"Even though we now do some low-key advertising, word of mouth is still critical in this business," he said.

Case in point: DVI's involvement in this year's Academy Awards was triggered by the company's participation in the millennium celebration in Washington D.C.

DVI was one of four video companies providing big screens for a millennium presentation at Washington's Lincoln Memorial.

"Some people involved in the (Academy) awards show became aware of our work with the millennium, and we were then among those bidding on the awards show."

As with all entreprenuers, luck often complements the hard work involved in growing a business.

As a former blackjack dealer, Cindy Caudillo understands the importance of luck.

"I'm a real people person, and that's a skill that I developed working in the casinos and that comes in handy in our business," she said.

Familiarity with the casinos is useful for any company doing business in Las Vegas. That's especially true if your firm's product is one of the first sites to greet visitors.

Guests checking into the MGM Grand hotel-casino are greeted by a video wall provided to the world's largest hotel by DVI.

As the industry and its technology continue to evolve, competition among video companies grows.

"We've been in business since 1981, and there's been a gradual increase in the number of companies involved in providing video equipment," said Larry Hamm, owner of Las Vegas Video & Sound.

In addition to sales and rental of video equipment, Hamm's firm provides a range of film and television facilities for visiting production companies.

Located at 4027 Petra Ave., the company employs 22 people. However, Hamm says that number can swell to as many as 100 employees depending on demand.

Being based in one of the world's leading convention destinations, video services firms such as Hamm's and the Caudullos are well positioned to take full advantage of their headquarters' location.

"Corporate conventions represent a major part of our business," said Hamm. "There's a demand for a range of video products, including large monitor screens and plaza display screens."

Caudullo says constantly evolving technology plays a key part in the continued success of his company.

"It's really a challenge to keep up with the way technology is changing," he said.

"And it's also quite expensive. But it's absolutely essential for us to do so."

Caudullo said a nine-panel video wall can cost $35,000, plus an additional 25,000 for the required processor.

"Most of the video screens we use are manufactured in Hong Kong," he said. "They tend to be less expensive than the domestic products."

Despite his firm's burgeoning business, Caudullo laments the lack of more production facilities in Southern Nevada.

"We really need more studio facilities here," he said. "There could be so much more local (film and video) business generated here if we had those facilities."

Still, Caudullo remains a big Las Vegas booster.

"You know, we started this business from zero dollars and grew it into what it is today," he said.

"There's no other place in this country that you could do what we've done with our business here in Las Vegas."