COMPANY TOWN ANNEX

Matsushita, MCA to Form Videodisc Unit: Matsushita Electric Industrial Co. and MCA Inc. will form a Los Angeles company to produce films for videodisc systems, according to the Japanese newspaper Nihon Keisai Shimbun. The company, Digital Video Compression Corp., will be owned by Matsushita and staffed by employees from Matsushita and MCA, the newspaper said. Digital videodiscs are a technology that squeezes movies onto something that looks like a compact disc, resulting in better quality than available on videotape. Matsushita sold its 80% stake in MCA last year to Seagram Co. Matsushita and MCA officials were unavailable for comment.