Warner Dvd Titles Hit Stores Nationally
Video Week
Mon, Aug 25 1997
DVD titles from Warner Home Video (WHV) and WHV-distributed labels were released to stores nationally for sale Fri., 4 days earlier than VSDA-announced Aug. 26 street date for national rollout (VW July 14 p1). WHV executives said that while Aug. 26 remained studio's official ad date on national rollout, titles actually were released for sale Aug. 22 to permit retailers to exploit weekend traffic. WHV sources said they expected discs to reach 7,000-10,000 storefronts. Company said it has sold total of more than 1.2 million discs in 7-city "test" that began in late March (VW March 24 p1). Blockbuster stores outside 7 WHV markets won't be among new locations handling DVD. Blockbuster Media Mgr. Wade Hyde said that despite WHV national launch, retailer is sticking to original 7 WHV markets and additional market of Phoenix, which Blockbuster added "a couple of weeks ago" in answer to requests from its stores there. DVD test will continue in 105 stores in those 8 markets only, he said. On other hand, Best Buy is taking full advantage of national WHV debut, announcing last week it has expanded its DVD software selection to 150 titles in all stores. Company said it has 20% share of DVD software market, with sales averaging 30,000 titles per month even with only 30% of company's stores carrying WHV before national launch, Mktg. Vp Gary Arnold said. Best Buy launched DVD software March 25 with 30 WHV titles in 74 stores in 7-city area. It expanded DVD hardware to all 280 stores in May but had only limited number of software titles available outside 7 markets until now. Ingram Entertainment, one of WHV's 2 distributors for 7-city test (other being Image Entertainment), has programs in place for national launch. Distributor will offer kiosk with Toshiba TV and player and 2 additional players that retailer may rent if desired -- "one to show, 2 to go," Ingram Interactive Media Vp Jeff Rouse said. Kiosk holds 40 DVD discs, including most popular titles from all studios, not just WHV and distributed labels, he said. It also comes with demonstration disc, instructional kit, POP. Total cost to dealer is $2,949, and company's Video Financial Services (VFS) program allowing 6-month dating is in effect, similar to Ingram's extended dating program for secondary VHS releases. Ingram also is offering PolyGram's rental kiosk featuring Philips player. Rouse said he hasn't seen obvious pattern yet in terms of regions where there's most interest in DVD. In original 7 markets, Ingram's main customers were consumer electronics stores such as Circuit City and Fry's Electronics. Stores in locations outside 7 markets showed only limited interest in DVD even though titles from other studios were available -- there weren't enough available for most retailers to deem it worthwhile to get into business, he said. But now that WHV is national, Ingram is seeing chains with stores in original 7 cities rolling out to other areas, Rouse said. Chains in 7-city area still are showing most interest in DVD because they have had several months to "tweak mix." Others are "approaching DVD cautiously" and are "not ordering huge quantities," preferring to wait to "see how consumers behave," he said. While Ingram has yet to see orders for DVD that are even 1% of what dealers order for VHS version of same title, results so far are encouraging, with returns at less than 10%, Rouse said. About 80% of accounts have been carrying DVD for sellthrough only, he said, but with national launch, that's changing; Ingram now is seeing more video specialty stores and grocery chains in rental business adding DVD. He said he hasn't noticed much competition from other distributors yet -- it's still "too early in the game." Meanwhile, Republic Entertainment will continue selling DVD titles it already has announced for sellthrough despite announcement last week that it's relinquishing its rental business to affiliated Paramount Home Video (PHV) (see separate report, this issue). Exception is Night Falls on Manhattan, which Republic had planned to release to rental market on DVD and VHS simultaneously -- PHV now has rental rights to movie and won't be releasing DVD version; it remains one of staunchest studio DVD holdouts.
(Copyright 1997 by Warren Publishing, Inc.) |
