VSDA, IEMA set to merge

UPDATE: Andersen will continue as president of new org

By Jennifer Netherby -- Video Business, 4/11/2006

APRIL 11 | The Video Software Dealers Assn. will merge with videogame organization Interactive Entertainment Merchants Assn. to form a single yet-to-be-named group representing movie and game retailers, the two organizations announced Tuesday.

VSDA has always had a strong independent and rental membership base, and by merging with IEMA, which represents the largest mass merchants in the business, the combined organization will be more influential, both groups say.

IEMA has 29 members—including Wal-Mart, Target and Blockbuster—which together represent 75% of the videogame market. The VSDA has more than 1,000 members, ranging from large retailers such as Blockbuster to small mom-and-pop video stores. About one third of IEMA members are already members of the VSDA.

“By coming together in one organization, the retailers and distributors of DVDs and videogames will increase their collective power and benefit from the business acumen and product knowledge of one another,” VSDA chairman Bob Geistman said. “We are convinced that one association can accomplish even more than two working separately.”

The new organization will be based in VSDA’s Encino, Calif., headquarters. VSDA president Bo Andersen will be president of the combined group; IEMA president Hal Halpin and the Crest Group will continue in a consulting role during the transition.

The 17-member VSDA board and 11-member IEMA board will combine into one board during the transition and choose members for an overarching board.

VSDA VP of public affairs Sean Bersell declined to say what the group’s combined operating budget would be but said the merger was driven by the desire to create a more influential group and not to increase dues revenue by adding new members.

“IEMA has done a terrific job in bringing together the major retailers and representing the top part of the video and computer games industry,” Bersell said. “VSDA has done a tremendous job in representing the video retailing community, particularly the rental and the video specialists. The combined organization brings those two pieces together.”

The VSDA has worked with IEMA in efforts to fight videogame legislation in the past, and in February, the two groups jointly hired Washington lobbyist Stuart Spencer to represent them on Capitol Hill. Now that the groups are combined, they will be able to streamline some of their overlapping efforts.

The merger comes more than a year after VSDA’s failed marriage with the National Assn. of Recording Merchandisers (VB, 11-18-04).

“This is a great development for both the video and videogame industries,” IEMA chairman Rick Vergara said. “The merger will create a more efficient and influential organization to serve the needs of video and videogame retailers and distributors. The interests of the membership of the two associations are so closely aligned that we expect a seamless integration.”