Digital copy, Blu-ray can help indie retailers compete
HOME MEDIA EXPO: Distributors offer revenue-growth tips
By Susanne Ault -- Video Business, 6/24/2008
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JUNE 24 | LAS VEGAS—Distributors advised independent rentailers to improve promotion of digital copy and Blu-ray Disc, among other merchandising tips, to help them stay competitive against mass merchants and online stores during a Tuesday Home Media Expo presentation here.
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2008 Home Media Expo
Many indie rentailers confessed that they have not yet widely embraced some of these new technologies. But VPD, Baker & Taylor, Rentrak, WaxWorks VideoWorks and Ingram Entertainment executives told indie retail attendees that making these forward-thinking changes would distinguish them and help them grow revenue.
Baker & Taylor senior VP Frank Wolbert said indie bricks-and-mortar stores can fight customer loss to iTunes by underscoring titles that carry embedded digital copies. Consumers can either watch the film on DVD players or transfer the copy to view the movie on computers, laptops or iPods. He asked retailers to build special store sections dedicated to titles with digital copy and create signage around it for easy customer identification.
“You have the ability to serve customers on DVD and on mobile entertainment,” said Wolbert. “That will keep people from downloading digital films from iTunes.”
Wolbert said he planned to press the studios to roll out more marketing of the titles featuring digital copy to further help retailers.
“I don’t think the studios are doing a good job promoting titles, [because] you don’t know which ones have digital copy,” he said.
“But you can put in sections that will call out the fact that you can get two configurations [of product] at the same price as a DVD,” Wolbert continued.
WaxWorks president Kirk Kirkpatrick and Rentrak home entertainment president Marty Graham advocated for indies to partner with their local electronics stores to help introduce Blu-ray to their neighborhoods through cross-couponing. At least one rentailer, Regan Price from Wyoming’s Video Depot, said she is worried about customer backlash if her store pushes too hard for people to adopt a new format.
“It’s hard to say you have to start all over again [building up your library] if some of these people just bought their DVD player two years ago,” Price said.
Recognizing such adoption challenges, Kirkpatrick suggested video stores create value for their customers to encourage the switch to Blu-ray.
“At the electronics store, for every player that’s sold, they can hand out gift certificates to your store that will help make you the destination for [Blu-ray] titles,” said Kirkpatrick. “A lot of you have made a new statement with videogames, but now is the time for Blu-ray to help grow" the home entertainment industry.
Rentailers asked distributors for suggestions on how to improve their sell-through business when Wal-Mart consistently beats them on price. Distributors believed that today’s sky-high gas prices could help swing some of that sales momentum back their way.
“With gasoline the way it is, it can’t be easy to go to the store and find the price on a product and then make a conscious decision to go back in your car and go find it somewhere else for $3 cheaper,” said Tom Kielty, VPD senior VP of sales and purchasing.
The distributors also said indies could trounce Wal-Mart and other big chains with a large selection of independent films. Most mass merchants focus on carrying only the major new releases.
“You have an exclusive on this stuff,” said Rentrak’s Graham. “Wal-Mart is not stocking this.”
