Home Media Magazine - July 29-August 4, 2007 - (Page 12)

COMMENTARY www.homemediamagazine.com THE BUZZ BY ERIK GRUENWEDEL, SENIOR REPORTER The Buzz That Wasn’t nother Entertainment Merchants Association (EMA) confab has come and gone. And with the exception that it was held at The Venetian in Las Vegas, its impact and relevance are a matter of conjecture. While I’ve never warmed to the suite concept (who wants to peek beyond a partially ajar door?), the absence of the adult entertainment floor (especially in Vegas) was a noticeable omission. Considering the show was for software retailers and a sizable percentage of independent attendees survive on the rental and sale of adult content, the lack of adult exhibitors and accompanying “talent” killed a likely buzz. Case in point: The Peach DVD party at Tao Beach was a laborious evening until a $1,000 bikini contest made it interesting. A WHILE I’VE NEVER WARMED TO THE SUITE CONCEPT (WHO WANTS TO PEEK BEYOND A PARTIALLY AJAR DOOR?), THE ABSENCE OF THE ADULT ENTERTAINMENT FLOOR (ESPECIALLY IN VEGAS) WAS A NOTICEABLE OMISSION. An EMA official said retailers involved in adult should come to the AVN confab in January. True, but when the VSDA in 2003 held a mini-confab in Atlantic City, N.J., the 50% adult exhibitor mix generated retail attendee interest from Florida to Maine. “Thank God for porn,” was a rallying cry uttered by more than one retailer at the show. If there was a flashpoint at this year’s EMA, it was decidedly not adult themed. But its impact might have been ecstasy to those who paid attention. Erik Gruenwedel’s e-mail address is egruenwedel@questex.com Toshiba Corp. offered its HD-A2 HD DVD player for a special show price of $99, including three HD DVD titles. Considering that the retail price of the movies practically paid for the player, this was a great deal. Indeed, it was Wal-Mart that opened the floodgate to consumer demand for DVD in 2003 when it offered a $39 DVD player the day after Thanksgiving. One naysayer told me the $99 player underscored the format’s desperation and was limited to 720p resolution compared to 1080p. So what, I say. I’ve watched HD DVDs on HD-A2 and HD-XA2 players in both 720p and 1080i resolution with no reservation. While I’m not an early adopter or high-def aficionado, I am fiscally challenged. I’ll take a deal when I find one. READERS’ FORUM I The following letter is in response to Chris Tribbey’s article “Microsoft and Amazon to Bow Indie HD DVDs,” (HM July 8-14, 2007) in which Amazon and Microsoft will sponsor 1,000 titles on HD DVD to be distributed through CustomFlix’s DVD on Demand service: T H E Y SAI D I T “IT’S NICE TO BE THOUGHT OF, AWARDED FOR DOING WHAT I LOVE. A LOT OF PEOPLE THINK I’VE DIED.” Ernest Borgnine, upon receiving the Sustained Creative Achievement Award from the Entertainment Merchants Association Awards. sive HD DVD and niche market through Amazon.com. Why not? Blockbuster’s decision to carry only Blu-ray in their retail stores is consistent with their “short-tailed” vision of the marketplace, and with the Blu-ray “high-priced, HD DVD Using a Long-tail Strategy blockbuster megahit” marketing strategy. The recent article about 1,000 independent films beOn the other hand, the rumored linkup between Amaing released inexpensively on HD DVD caused me to zon and Netflix would confirm their “long-tailed” vision think about the HD DVD market penetration strategy in of the marketplace. HD DVD equals any high-def movie terms of a “long-tailed” marketing strategy. Chris An- you want, anytime, anyplace cheap! Sounds pretty derson, the editor of Wired Magazine, defines the char- appealing to me. acteristics of niche products that drive what he calls long-tailed markets as: Peter Bock West Linn, Ore. (1) Production costs are lower (2) Costs of buying niche products are lower (Anderson’s article is available at www.wired.com/wired/archive/12.10/tail.html.) Google and Amazon.com have made it easy to find and choose among niche products. Blu-ray Disc may very well represent the millions of dollars squeezed from a few megahits at the top of the charts, but if the experience of Amazon.com is any indication, HD DVD will thrive. To use one of Anderson’s best-known examples, think of Barnes & Noble, which carries about 130,000 titles in one of its superstores. Now compare it to Amazon.com, which has a virtually limitless number of book titles available. So what percentage of Amazon.com’s sales come from outside its top 130,000 titles? More than 50% — that’s right, more than half. Consumers love variety, and if they have a lot of choices, they’ll all choose different things. It turns out that the HD DVD format, with its low production costs, is ideal for a long-tailed marketing strategy. And besides those independent studios, what other market segment is likely to adopt HD DVD, especially if players from China are very cheap and disc replication is very cheap? That’s right, the adult entertainment industry. Eventually, the major studios will realize that they can’t afford to reproduce their thousands and thousands of library titles on expensive Blu-ray discs, but on inexpen- I The following letter is in response to Erik Gruenwedel’s article “Warner Execs Blast Rental” (HM June 10-16, 2007), in which the company said it was testing simultaneous releases on cable VOD and DVD — and in which Time Warner chairman and CEO Dick Parsons said it would be a “cold day in hell” before he left his apartment to rent a movie: “I’LL TELL YOU WHAT DVDS HAVE DONE. THEY’VE SAVED OUR ASS.” John Schneider at the EMA Awards S.O.S. for Small Businesses Thanks to Dick Parsons for filling our “demise of the video store” article quota for the week. When I read the quote from “Cold Day in Hell Dick,” I thought of closing up shop and going home, but then realized I make a living off this store. Then I thought, in addition to Wal-Mart, “Cold Day in Hell Dick” probably hasn’t frequented a Chinese takeout place, hardware store, pizza shop or pushcart vendor in his neighborhood either. Maybe we’re all in trouble. What we really need is a way for [people to get] out of their Manhattan penthouses and plunk down three or four dollars for a new release. Perhaps they’ll buy some popcorn too. If you happen to speak to “Cold Day in Hell Dick,” please ask him to start mass mailing those AOL discs again, you know, the newer version without all the bugs, restrictions and spam. Greg Mercer Captain Video Stony Point, N.Y. We Want to Hear From You! Please send letters to: Editor, Home Media Magazine 201 East Sandpointe Ave., Suite 500 Santa Ana, CA 92707 E-mail: HomeMediaMagazine@questex.com Fax: 714.338.6712 Include name, business address (city and state) and telephone number. Letters are subject to editing. Join Us Online: www.homemediamagazine.com Visit our Web site to participate in discussion boards and weekly polls on the latest industry issues. 12 Home Media Magazine July 29–August 4, 2007 http://www.homemediamagazine.com http://Amazon.com http://www.wired.com/wired/archive/12.10/tail.html http://Amazon.com http://Amazon.com http://Amazon.com?s http://www.homemediamagazine.com

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Home Media Magazine - July 29-August 4, 2007

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