F.Y.E. prices Blu-ray releases low
Best Buy punches up format merchandising
By Susanne Ault -- Video Business, 3/28/2008
MARCH 28 | Two key home entertainment retailers are expanding their merchandising of Blu-ray Disc. Trans World Entertainment’s F.Y.E. stores are offering steep discounts as the chain makes the format a part of its rebate and loyalty programs, and Best Buy is clearing HD DVD out of select stores and turning the space over to Blu-ray.
F.Y.E. advertised Walt Disney Studios Home Entertainment’s Enchanted on BD for $16.39 during the title’s March 18 street week. That handily beat pricing at most other retailers, including $23.95 at Amazon.com, $29.99 at Best Buy and $23.87 at Walmart.com.
To enjoy F.Y.E.’s basement tag on Enchanted, however, customers must redeem a mail-in rebate, plus belong to the chain’s frequent buyer program ‘Backstage Pass.’ Full F.Y.E. pricing on Enchanted is a more average $25.99. If customers redeem the rebate but don’t belong to Backstage Pass (where members pay a $25 annual fee to enjoy 10% discounts on most products), Enchanted costs $18.99.
F.Y.E. has long offered such rebates for its standard DVD releases, but the chain is now spreading similar offers for its Blu-ray versions.
Going forward, Trans World plans to also heighten BD merchandising by gradually devoting space that had been split between BD and HD DVD to BD exclusively. The format also is getting more promotion at the retailer’s Web site.
“Now that the confusion is over, we want to drive customers’ attention to the Blu-ray category,” said Mark Higgins, Trans World VP of DVD, videogames and consumer electronics. “We use various methods to do that—pricing and promotion will be part of the strategy going forward.”
In other deals, F.Y.E. is offering 20th Century Fox Home Entertainment’s April 15 release Alien vs. Predator: Requiem for $18.19 for Backstage Pass members with rebate; $20.99, with rebate only; and $27.99 regular pricing. Fox’s April 15 title Juno is being offered at the same pricing break-down. For comparison, Amazon.com was listing AVP: Requiem and Juno for a straight $27.95.
Meanwhile, select Best Buy stores are moving to clear out all unsold HD DVD software and has expanded its Blu-ray Disc merchandising at the same time.
Chain spokesman Brian Lucas said that there was no immediate plan underway to remove HD DVD stock nationwide. But all HD DVD titles had disappeared from the in-line racks of one Los Angeles Best Buy outlet by last week. With new releases quickly drying up in the format, Lucas said, “I’m sure we will start doing that [chain-wide] at some point.”
Just a couple of weeks ago, there was room for 120 HD DVD facings at that same L.A. store. However, the L.A. outlet was nearly wiped out of its HD DVD copies at that time. Many shelf slots were vacant, and any featured titles encompassed just one or two units.
Now, in the spots previously held by HD DVD, the L.A. Best Buy has a mixture of Blu-ray titles and some standard DVD product. Blu-ray rack facings last week totaled about 295, marking about a 50% increase from the March 14 week.
Best Buy still had HD DVD titles for sale on its Web site. However, most titles were listed as being in limited availability or completely sold out.
After Warner Bros. decided to exclusively back Blu-ray earlier this year, Best Buy quickly decided to favor the format over HD DVD. The chain said it would emphasize Blu-ray over HD DVD starting in March.
At that time, however, the chain said it would still offer HD DVD titles as long as it made sense according to customer demand. Last month’s death of the HD DVD format likely has accelerated a drop in demand for HD DVD software.
