Key indies enjoy perks of big chain stores

By Susanne Ault -- Video Business, 4/24/2008

APRIL 24 | Many independent video stores are no longer even blips on studio radar, but there still are certain indies that, because of their loyal customer bases and local reputations as tastemakers, enjoy the influence of much larger retailers.

Seattle’s Scarecrow Video is among the influential stores that some DVD distributors and suppliers rely on for product advice and title promotion, particularly for animation and other arthouse fare.

Scarecrow and others, such as Tucson, Ariz.’s Casa Video; Boulder, Colo.’s Video Station; and Manhattan, N.Y.’s Kim’s Underground, are so respected as film experts that their support of DVDs can translate to valuable promotion exposure and sales or rentals beyond their four walls.

These stores have cultivated huge fan followings because of their knack for finding hidden DVD gems not carried by the major chains. Also, many are frequently involved in trendy events, such as Scarecrow’s ongoing sponsorship of Seattle International Film Festival and Washington anime convention Sakura-Con.

“For us, they don’t represent huge market share, but they represent huge market voice,” said Chris Donaldson, director of marketing at Liberation Entertainment. “Customers really trust the Scarecrow recommendation. We will go to them for feedback about what titles we are considering releasing. They are the feet on the street and talk to the consumer more than we can, and they understand what is working in the market.”

After a recent consulting session with Scarecrow, Liberation greenlit the October DVD release of The Gits, a documentary about a Seattle rock band.

“These guys can help you make a number,” Image Entertainment senior VP of sales Richard Buchalter said. “If they become enthusiastic about a title, they end up creating a network that gets the word out. You might eventually get a sale at Amazon.com, or another store.”

As a direct-to-DVD specialist, Image appreciates tastemaker stores’ willingness to single out worthy, non-theatrical material. These video outlets carry 40,000 to 60,000 titles, appreciating large and small projects, and everything in between.

Kim’s Underground, for instance, devotes space to 400 Image-distributed Criterion Collection arthouse catalog titles, making it a Top 40 account for Image.

Dominant chains, with their multi-product merchandising, typically slot room for 1,000 titles at most at each outlet.

“We have a national reputation, and people do look to us to see what we are excited about,” Scarecrow buyer Mark Steiner said. “And we are excited about stuff that is cool; not what is necessarily considered [cool] by the box office.”

Steiner said Scarecrow highlights a wide mix of titles in local newspaper ads; for example, April 22 featured DVDs included Paramount Home Entertainment’s big theatrical Cloverfield, Image cult Asian classic Intimate Confessions of a Chinese Courtesan and Cartoon Network late-night Adult Swim title Tim and Eric Awesome Show, Great Job.

“Mark will tell us things that are happening in other territories,” said Jay Douglas, VP of video at Ryko Distribution. “Sometimes a film might break in Japan or the U.K., and he would be aware of it.”

Normally, single video stores don’t order enough volume to buy directly from suppliers. Yet Kim’s and Scarecrow are among accounts that order directly from Image.

Tastemaker clout can score certain single stores chain-like perks.

Viz Video granted Scarecrow a two-week exclusive window to sell anime title Nana at the video store’s booth at March 28-30 Sakura-Con. Nana was released elsewhere on April 8.

Scarecrow also landed a spot on the 13-city DVD promotional tour for Tim and Eric, which is distributed by Warner Home Video. The comedy duo also will stop at a Chicago F.Y.E. outlet and a number of theaters and clubs.

“If someone is from that area, they’ll say, ‘That’s interesting,’ if they see it at Scarecrow,” said Erik Resnick, senior director at Cartoon Network Enterprises. “At a big box, they might not say that.”

Tastemaker stores do feel pressure to stay on the cutting edge.

Tucson’s Casa Video is staying current by launching an online DVD-by-mail service by the end of the month. Managed by Intrigo, Casa Video’s Web offering will manage costs by providing titles on an a la carte basis.

“If we tried to run it like Netflix with subscription, we couldn’t make up the postage expenses,” Casa Video owner Gala Schwab said. “But we were the first store to offer laserdisc titles in Tucson. So this is another area that we have to stay on top of.”

Similarly, Boulder’s Video Station bowed a weekly online newsletter last fall for its customers, including staff DVD recommendations.

“Our employees are not your average retail clerk,” Video Station co-owner Sheri LaPres said. “They are film students, and they have no qualms about telling you what they think.”