At IndieFest, VPD, studios help indie retailers
By Susanne Ault -- Video Business, 5/2/2008
MAY 2 | FOLSOM, Calif.—During the first ever IndieFest West here this week, major studios and distributor VPD spent a day discussing with indie retailers how the stores can differentiate themselves from growing competition, including Netflix, video-on-demand services and kiosk rental machines.
“The video business started with these types of retailers, and it’s important to continue to support them,” said Tom Kielty, senior VP of sales at VPD. “They helped us build our business, and we owe it to them to help them now.”
IndieFest underscores VPD’s ongoing commitment to dealing with the studios on behalf of its indie store clients, added Kielty. Frequently, after hearing indie complaints about title clutter, for example, VPD has succeeded in convincing suppliers to change street dates.
More than 100 indie managers traveled to the event, which was presented by the Independent Dealers of Entertainment Assn.
“We’re having a hard time competing,” said Cheryl McCormick of Fallon, Nev.’s Corky’s Video Village. “The previous owner three years ago was making over $3,000 sales days, and now we have several days when we make $40 to $50. There are now three grocery stores [with kiosks], plus Netflix and Blockbuster. We want to provide something that the competition doesn’t have.”
One big piece of advice VPD and studios gave to indies is to incorporate Blu-ray into their inventories now.
“They need to get into Blu-ray before their competition gets to it,” said Ken Hocker, VPD team leader.
To date, dominant kiosk brand Redbox doesn’t offer Blu-ray titles. Additionally, many VOD films are not yet available in high-definition.
VPD partnered with Disney, Sony, Fox and MGM Home Entertainment recently to offer indie stores a Blu-ray starter pack with 18 titles, including Fantastic Four, Hellboy and Crimson Tide, at $72 less than the discs would cost individually.
Sony regional sales manager Larry Clayman presented a Blu-ray session for the indies, encouraging them to start and/or ramp up Blu-ray sections in stores. Although the format’s early days attracted a limited, mostly young male audience, adoption interest has now widened to the mainstream, he said, noting high-def shoppers include males 18-49, women and families.
Citing Understanding & Solutions research, Clayman said Blu-ray hardware’s installed base (encompassing PlayStation 3 and set-tops) is expected to jump from more than 12 million units in 2008 to more than 25 million units in 2009.
During a Q&A session, indie managers all saw advantages in integrating Blu-ray but were dismayed by merchandising costs.
“No one is looking for a free hand, but you can’t expect us to pay retail to set up our own demonstration displays,” said Ken Dorrance, owner of Alameda, Calif.’s Video Station, regarding $399 Blu-ray players.
Clayman said he would consult with VPD to see if there were collaborative ways to assist stores introducing Blu-ray to customers.
Many studios also rolled out a slew of trailers for their direct-to-DVD and limited theatrical release titles that they said can differentiate indie stores from larger competitors.
VPD and IDEA each have recommendation programs in which they regularly spotlight such under-the-radar titles.
“None of these will break the box office,” said Laura Giampino, Vivendi Entertainment director of sales, referring to upcoming release Little Chenier: A Cajun Story. “But they’ll do well for you as rentals.”
With few traditional screeners being sent out these days, store execs said they especially liked seeing these trailers blasted across a big screen during IndieFest.
“After seeing the preview for Steel City, I now want to order it,” said Kent Smith, owner of Seattle’s Island Video stores, regarding the family drama from presenting indie supplier Peace Arch Entertainment. “When I saw a print ad for it, the artwork looked like a thousand other titles.”
The big 2008 titles also were chatted up to the indies.
On behalf of Warner Home Video, VPD presented the studio’s fourth-quarter slate, including tentative street dates for titles that haven’t yet premiered theatrically. Speed Racer, The Dark Knight and Get Smart are expected to bow on DVD on Nov. 25, Dec. 2 and Dec. 12, respectively.
Tom Paine, owner of Redmond, Wash.’s DVD Now and treasurer of IDEA, said he will push to launch other regional IndieFests across the country. Paine wants to rotate hosting duties among various distributors, including VPD, Ingram Entertainment and Baker & Taylor.
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