DVD floodgate about to open.......................
twice.virtualmarketing.com
DVD To Star During VSDA Convention - -July 7, 1997
By Greg Tarr
DVD will take center stage in Las Vegas this week as the representatives from both the software and hardware sides of the industry converge on the Video Software Dealers Association (VSDA) convention.
Most expect major announcements on greater availability of software and, perhaps, new studios announcing plans for DVD releases. Currently, 11 different studios are marketing or preparing to market DVD software titles, and over 200 titles are expected by the end of
the year.
Warner Home Video continues to be the primary supplier of major-release DVD movies, but at press time it had scheduled an off-site press conference that some expect will offer insights into its plans to roll out distribution beyond the initial seven-city target.
Additionally, Warner's affiliated music video label, WEA, has opened distribution outside those territories.
According to one distributor, Warner may have been timing its national rollout until after seeing the first results of its 100% unsold stock return offer, which Warner began honoring this month.
"We have found that over 90% of our dealers have reordered four or five times on each of the titles, which means we won't see too many returns for lack of sell-through," said Gary Linsky, sales and marketing director for San Francisco-based CAV Distributing. "DVD is doing unbelievably well for us. Our dealers are turning over titles at a very heavy pace."
Meanwhile, Image Entertainment announced last week that it has reached an agreement to put 12 titles from the Orion catalog on DVD, said Garrett Lee, Image marketing director.
"We will be working with the cream of Orion's crop. Initial titles will include Dances With Wolves, Robocop and Silence Of The Lambs," Lee said.
Meanwhile, Bill Sondheim, president of PolyGram Home Video, reported seeing very positive early signs for the format.
"Our sales to date have been well beyond our expectations, to the tune of two to three times what we originally projected," he said. "In fact, we are seeing initial sales volumes that are starting to approach what we would expect on traditional laser sales."
However, Sondheim said he is concerned that "some suppliers are putting out software without much care, and I hope consumers are intelligent enough to recognize quality films and special programming from the budget-type approaches. I'd hate to create any animosity within that consumer early on."
Sondheim said PolyGram's DVD hardware/software rental kiosk is rolling out now after a slight delay during the production of sales brochures.
"We expect to open up the flood gates to our rental program at VSDA," said Sondheim. "We now have the physical product to show chains, and early indications are very positive that consumers are eager to experiment with DVD."
Adult software producer Vivid Interactive plans to hype its first two DVD titles loaded with multiple camera angles and accompanying video games as "the most advanced and most enhanced DVD title available, anywhere."
Dave James, owner of the Van Nuys, Calif.-based supply house, said early demand has been overwhelming.
"I think I might have gone a little overboard for the first release," James said, "but I wasn't sure what the major studios were going to offer, and I wanted to make sure I was putting out at least as many features as the major studios."
Vivid plans to play up the format at the convention, he said, adding that if the momentum accelerates, Vivid will produce titles with "softer" themes, as well. |
