Brands stand up
DVD FOR KIDS: Well-known DVD franchises prove most popular in downturn
By Wendy Wilson -- Video Business, 6/1/2009
JUNE 1 | DVD FOR KIDS: Although families are feeling the crunch of the economic downturn, many are still finding money to spare for kids programming on DVD. But the recession is shaping consumer spending in regard to what they are choosing to buy. When money’s short, the well-known brands bring in the dollars.
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“We are certainly concerned about recessionary impacts, but we see resilience in our core brands that Mom can identify with,” says Brown, citing perennial favorites Scooby-Doo, Tom and Jerry and DC Comics’ Batman and Superman as standouts.
Moms also will be looking forward to Walt Disney Studios Home Entertainment’s Snow White and the Seven Dwarfs: Diamond Edition, which arrives in a combination Blu-ray Disc/DVD Oct. 6 and DVD Nov. 24. There’s also Universal Studios Home Entertainment’s next Barbie DVD premiere movie, Barbie and the Three Musketeers, which will be released Sept. 15, along with Bionicle: The Legend Reborn from the Lego franchise, targeted to boys. Upcoming theatrical movies, including Harry Potter and the Half-Blood Prince and Ice Age: Dawn of the Dinosaurs, are bound to stir interest in their DVD franchise product as well.
Nielsen data shows DVDs from Barney, the prehistoric preschool mainstay now in its 17th year on home video, moved back up to hold the No. 4 position in the first quarter of 2009, says Pam Westman, executive VP of consumer products and home entertainment for Hit Entertainment.
“Retailers like our evergreen brands because it gives them that solid, dependable margin,” Westman says of Barney’s growth during the recession. “They don’t have to go into some of the price wars that they do with the theatrical releases. These are their day in, day out, bread and butter, and that’s what pays the bills in these tough times.”
In 2008, branded kids titles comprised 94% of children’s non-theatrical video inventory on retail shelves, according to Videoscan research provided by Hit distributor Lionsgate. That’s up from 79% four years ago.
“I think as shelf space gets tighter and tighter at retail, it’s harder for retailers to take risks and more important for them to have comps and know how a specific title is going to perform on the shelf,” says Michael Rathauser, senior VP of marketing for Lionsgate. “That’s one of the clear reasons why branded products have become a bigger and bigger piece of their pie.”
But even a kids’ franchise with a proven track record is well-served by adding value for consumers and reevaluating the price point at which content is being offered.
Lionsgate will offer Hit titles from Barney, Thomas the Tank Engine and Bob the Builder, as well as its own Care Bears property, bundled with a lunchbox. Streeting in July for back to school, the sets will be priced at $19.98 each.
Nickelodeon reported solid sales success with a similar package for SpongeBob SquarePants in March. The company bundled a SpongeBob DVD with a lunchbox and a videogame, selling the package through Wal-Mart.
“It’s still hard,” says Nancy Rachman, VP of Nickelodeon and MTV Networks’ Kids and Family Group. “No one’s going to admit that business is easy in the economy, but in spite of that, kids are still buying DVDs. Kids are still kids. And we all want them to still be kids, and we want them to have fun.”
