Price cuts come earlier
Hello All,
To discourage retailer returns and shore up sagging disc sales, studios are becoming speedier at reducing prices on new releases.
Until last year, studios commonly began offering retailers price breaks between 60 to 90 days after titles initially streeted. That represented accelerated re-pricing from even earlier times, when studios waited up to six months before helping retailers shave price points.
Now, retailers are being wooed with deals as soon as 30 days after DVD titles launch. And the price reductions come in various forms.
In many cases, distributors provide retailers with rebates of $5 per unit. Also, stores might knock down pricing first and then charge studios the difference between the original and reduced retail prices.
Primarily, studios are offering rebates to extend title shelf life or to curb product returns.
Titles winning recent 30-day rebate treatment are said to include DreamWorks Home Entertainment's Shrek 2 and Shark Tale, 20th Century Fox Home Entertainment's Sideways and Buena Vista Home Entertainment's The Incredibles. Ditto on Universal Studios Home Entertainment's dual packs for Two Brothers, Thunderbirds and Shaun of the Dead, with stores selling Two Brothers/Thunderbirds and Shaun of the Dead/Dawn of the Dead in two-for-one fashion at about $20 apiece.
Retailers seem to appreciate the pricing relief, but they question whether studios are working unnecessarily hard to manage pricing.
"Why even come out at a higher price in the first place, when you're just going to re-price it 30 or 45 days later?" asked one buyer. "Over the short term, it's always good for the public. People can buy at a cheaper price, but in the long-term will it devalue the product?"
Ted Engen, president of the Video Buyers Group, applauded the trend as a way of reducing returns.
"So far, the studios have been easing into this," Engen said. "It makes sense. I hate shipping [returns] back and forth. There is all the paperwork."
Some rentailers believe studios are re-pricing at a more rapid rate in order to eat into video stores' previously-viewed sell-through activities.
Sales of used DVD copies might account for up to one-fourth of video stores' revenue. Typically, rentailers start selling previously-viewed rental copies about four months after the titles' initially street.
"Consumers now can buy new what you could be selling used," said Todd Zaganiacz, owner of Massachusetts' Video Zone and president of the National Entertainment Buying Group. "If they're re-pricing after 30 days, people might just wait. [There could be] erosion of the previously-viewed market."
Still, Zaganiacz thinks the studios are smart in their current pricing tactics. He suspects that after 30 days, stores are working to return 90% to 95% of what they haven't already sold.
"The majority of a DVD title's sales happen in the first 14 days of its release," he added. "How do you get those people who didn't buy [during that time]? It can't be priced too high."
To read the rest of the article Click Here
Talk to ya soon,
Donnie Hoover
www.cheap-dvds-advisor.com
Your One Stop Source For Cheap DVDS !!
DVD Reviews
To discourage retailer returns and shore up sagging disc sales, studios are becoming speedier at reducing prices on new releases.
Until last year, studios commonly began offering retailers price breaks between 60 to 90 days after titles initially streeted. That represented accelerated re-pricing from even earlier times, when studios waited up to six months before helping retailers shave price points.
Now, retailers are being wooed with deals as soon as 30 days after DVD titles launch. And the price reductions come in various forms.
In many cases, distributors provide retailers with rebates of $5 per unit. Also, stores might knock down pricing first and then charge studios the difference between the original and reduced retail prices.
Primarily, studios are offering rebates to extend title shelf life or to curb product returns.
Titles winning recent 30-day rebate treatment are said to include DreamWorks Home Entertainment's Shrek 2 and Shark Tale, 20th Century Fox Home Entertainment's Sideways and Buena Vista Home Entertainment's The Incredibles. Ditto on Universal Studios Home Entertainment's dual packs for Two Brothers, Thunderbirds and Shaun of the Dead, with stores selling Two Brothers/Thunderbirds and Shaun of the Dead/Dawn of the Dead in two-for-one fashion at about $20 apiece.
Retailers seem to appreciate the pricing relief, but they question whether studios are working unnecessarily hard to manage pricing.
"Why even come out at a higher price in the first place, when you're just going to re-price it 30 or 45 days later?" asked one buyer. "Over the short term, it's always good for the public. People can buy at a cheaper price, but in the long-term will it devalue the product?"
Ted Engen, president of the Video Buyers Group, applauded the trend as a way of reducing returns.
"So far, the studios have been easing into this," Engen said. "It makes sense. I hate shipping [returns] back and forth. There is all the paperwork."
Some rentailers believe studios are re-pricing at a more rapid rate in order to eat into video stores' previously-viewed sell-through activities.
Sales of used DVD copies might account for up to one-fourth of video stores' revenue. Typically, rentailers start selling previously-viewed rental copies about four months after the titles' initially street.
"Consumers now can buy new what you could be selling used," said Todd Zaganiacz, owner of Massachusetts' Video Zone and president of the National Entertainment Buying Group. "If they're re-pricing after 30 days, people might just wait. [There could be] erosion of the previously-viewed market."
Still, Zaganiacz thinks the studios are smart in their current pricing tactics. He suspects that after 30 days, stores are working to return 90% to 95% of what they haven't already sold.
"The majority of a DVD title's sales happen in the first 14 days of its release," he added. "How do you get those people who didn't buy [during that time]? It can't be priced too high."
To read the rest of the article Click Here
Talk to ya soon,
Donnie Hoover
www.cheap-dvds-advisor.com
Your One Stop Source For Cheap DVDS !!
DVD Reviews
posted by Cheap DVDs Guy at 3:18 PM
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