Best Buy Chairman says, "DVD BIG" and Disney about to cave........................
twice.virtualmarketing.com
Schulze Upbeat About DVD
- -July 7, 1997
By Steve Smith
Best Buy chairman Dick Schulze is upbeat about DVD and the progress it should make during the next 18 months.
"We're excited about it," Schulze said, discussing its sales prospects for the holiday season and beyond. Best Buy's sell-through has been "beyond our plan since the first week. Hardware penetration is better than I thought it would be."
He noted that the chain has been "a point person" for the category, with its strong in-store display, a selection of six decks, and a full software array.
Like other retailers, Schulze said the only problem is software availability, but he is hopeful that may change. "It continues to be a 60- to 80-title assortment in key markets, while in others [the number] falls short of 50. By September there will be about 200 titles on the market, and by the end of the year, about 250."
According to his sources, Disney is coming closer to entering the DVD market, and, he said, "Disney is the linchpin. Warner has done a fine job, but Disney has got to be there, and it looks like that may fall into place."
Schulze may know something others don't, because in a conversation with TWICE at the opening of the first Best Buy stores in Pittsburgh (TWICE, June 30, p. 3), he was rather matter-of-fact about recordable DVD decks. "Next year [DVD] goes to a recording form late in the fall, which means prices drop on playback units," he said. "That's when VCRs go away [and] DVD steps up big."
"Instead of having a $130 [average] transaction [for a VCR]," continued Schulze, "you will have an average $500 transaction with DVD. Recording units will be priced about $600 or $700, while players will be at the bottom at $200 or $300." |
