Home Media Magazine - May 18-24, 2008 - (Page 9)

www.homemediamagazine.com NEWS Warner Curbs Used-DVD Sales New rev-share deal forces retailers to destroy used copies Outsourced Porchlight Launches New Indie Film Line By Chris Tribbey SUPPLIER PorchLight Home Entertainment has branched out again, announcing another new label. Just a few weeks after launching Inspire, an inspirational and faithbased line of DVDs, PorchLight unveiled an independent film line, Ocean Park Home Entertainment, debuting Aug. 26 with Pope Dreams, which follows a 19-year-old who tries to fulfill his dying mother’s wish to meet the Pope. Pre-order is July 23 and SRP is $24.98. “The Ocean Park label further expands PorchLight Home Entertainment’s reach into all genres of programming on DVD,” said PorchLight president Gary Jones. “Ocean Park is being launched as a showcase for films that are the best of today’s independent filmmaking, films that are innovative and quality entertainment that appeals to a broad and diverse demographic.” The second Ocean Park DVD will be Outsourced, due Sept. 2 (preorder July 30; $24.98), in which a customer call center worker has his job outsourced to India, and he has to travel there to train his replacement. “The debut of Ocean Park Home Entertainment further expands PorchLight Entertainment’s commitment to bring multi-tiered and full-service global distribution and marketing services to independent filmmakers,” said Robert Yu, VP of feature film acquisitions for PorchLight Home Entertainment. By Erik Gruenwedel SUPPLIER Warner Home Video’s return to revenue-sharing distribution via Rentrak Corp. following a one-year hiatus includes new provisions significantly limiting the number of titles rentailers can sell. The studio’s agreement allows stores — following the mandatory 30-day rental window from street date — the right to sell just 20% of Warner rental titles with box office revenue above $10 million. Additionally, stores must destroy 80% of titles with box office grosses above $50 million and 70% of copies for titles that made between $10 million and $50 million. Titles with box office tallies below $10 million do not have to be destroyed. The contract states stores must keep on hand all destroyed movies for at least 90 days following the rental period and are subject to a $20 fee for each missing DVD, if audited. Similar Rentrak rev-share agreements with 20th Century Fox, Lionsgate, First Look Studios and Sony Pictures do not limit sellthrough or mandate destruction of DVDs. The restrictions would appear to be another slap by Warner at the rental industry and independent stores, which have increasingly relied on sales of used product to supplement revenue. The studio and parent, Time Warner, have made no secret their disdain for DVD rental, which they say generates significantly lower margins than cable video-on-demand. In addition, Warner believes used product at the retail level cheapens the entire DVD category. “If somebody walks into a store and sees a box full of DVDs for $3, what does that do for the concept of DVD value?” said a source familiar with the situation. “DVD sales were down last year.” Studios say video stores aren’t required to enter into rev-share deals (where they don’t actually own the movies) and can instead purchase and sell titles obtained from other distributors without restrictions. A Warner representative was not immediately available for comment. Todd Zaganiacz, president of the National Entertainment Buying Group, a consortium of about 200 independent video stores, said the new rev-share restrictions are not surprising. He said if Warner upped the limit to 40%, independents might be able to make it work. He said rental stores need sellthrough to stay in business. “This model goes against everything that has made retailers successful today,” Zaganiacz said. Jerry Briggs, who has been in the video rental business for nearly 25 years, doesn’t understand Warner’s competitive stance toward a complementary business. “Without the video stores they scorn so much, they would never have had a market for movies,” he said. “It’s doubtful that the big-box stores ever would have jumped into the business had not the demand been there from video store customers in the first place.” For Marilyn Barnes, who regularly buys used DVD movies from her local Blockbuster (which has separate distribution deals with studios) in Foothill Ranch, Calif., any talk about sellthrough restrictions wouldn’t sit well. “Four DVDs for $20 is such a good deal,” she said. MERCHANDISING Placing a Premium Best Buy The Great Debaters Genius/Weinstein SRP $29.95, $32.95 Target $16.99 single-DVD only Wal-Mart $16.97 $19.96 w/The Junction Boys $22.96 two-DVD set Costco $20.09 two-DVD set only Barnes & Noble $29.69 two-DVD set only online price: $23.09 $16.99 $22.99 two-DVD set Untraceable Sony Pictures SRP $28.95, $38.96 BD $16.99 $29.99 Blu-ray $16.99 w/cell phone cover $29.99 Blu-ray $16.97 $19.96 w/When a Stranger Calls; $24.96 Blu-ray $26.09 $18.79 online price: $20.29 $38.99 Blu-ray* Mad Money Anchor Bay SRP $29.98 $15.99 $15.99 $34.99 $12.99 individual titles w/comic book reprint w/$20 Dale and Thomas popcorn gift card $14.96 $42.96 $14.96 individual titles w/ ringtone & lenticular cover $15.99 $19.99 online price: $20.99 Indiana Jones Paramount SRP $59.99, $26.99 each $37.99 $13.78 individual titles $35.99 trilogy boxed set only $54 online price: $41.99 $14.99 individual titles* * Online Only By John Latchem arget stores continue to give short shrift to two-disc special editions, as evidenced by the availability of only the single-disc version of The Great Debaters last week. But that doesn’t mean other retailers can’t fill the void. In fact, Costco and Barnes & Noble both offered only the two-disc special edition of the Denzel Washington movie, both in-store and online. Barnes & Noble also has an interesting Web strategy to push consumers to shop online, offering titles near SRP (with 10% discounts on new releases) in stores, but at 30% savings at the bn.com site. BN members save even more. However, it still doesn’t seem like enough to lure the average movie shopper, given the deep discounts and exclusives offered at Target, Wal-Mart and Best Buy. Also last week, Best Buy offered a promotion with Disney giving customers a movie ticket for The Chronicles of Narnia: Prince Caspian with the purchase of the CD soundtrack, or the first “Narnia” film on DVD or Blu-ray, or select other Disney DVDs or games. T May 18–24, 2008 Home Media Magazine 9 http://www.homemediamagazine.com http://bn.com

Table of Contents Feed for the Digital Edition of Home Media Magazine - May 18-24, 2008

Home Media Magazine - May 18-24, 2008 Contents News TV DVD Reviews Pipeline Research Top 20 DVD Sellers Top 20 Rentals and Top 10 Charts Just Announced

Home Media Magazine - May 18-24, 2008

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