Warner expands reach of MOD titles
PHYSICAL: Amazon, other retailers carry classic DVDs
By Susanne Ault -- Video Business, 7/1/2009
JULY 1 | PHYSICAL: Warner Archive Collection titles are getting broader distribution at retail.
The deep catalog offerings, which include such titles as The Mating Game, Possessed and Once Upon a Honeymoon, are part of the manufactured-on-demand Archive Collection by virtue of the fact that their limited sales potential had prevented a traditional retail release. Yet, there’s now enough consumer interest in the titles that they are popping up on Amazon.com, CinemaNow and TCM.com (another Warner affiliate) in addition to the Warner Archive Web site.
Warner Archive offers about 200 titles from the studio’s vaults, which are available for $19.95 on DVD or $14.95 as a permanent download. Warner works with Allied Vaughn to press and package discs on demand and with CinemaNow to run its download function.
Warner Archive allows the titles to be sold elsewhere after a 90-day exclusivity window, and retailers seem to welcome the opportunity.
“This gives Amazon.com customers access to a greater selection of films, with continuous in-stock availability and expedited shipping options that make access to this content more convenient,” said Amanda Wilson, Amazon spokeswoman.
The Mating Game and Once Upon a Honeymoon were recently ranked numbers 12,129 and 25,845, respectively, among Amazon’s top DVD sellers—but they nevertheless meet the retailer’s goal of widening selection with little or no additional cost.
Outside retailers are applying varying business strategies, including different pricing and manufacturing partners, with the Warner Archive titles.
Amazon-owned MOD service CreateSpace, not Allied Vaughn, presses discs that are sold on Amazon. The site is selling about 10 Warner Archive titles at $28.98 SRP, which is discounted to about $26 for some films.
Third-party Amazon sellers also are offering titles still in the Warner Archive exclusivity window, such as Pride of the Marines and The Smart Set, for a relatively pricey $39.95. These are presumably bought and re-sold discs, rather than MOD units from CreateSpace.
CinemaNow, which handles download fulfillment for the Warner Archive online storefront, also now sells titles directly from its own site. The service is offering the Warner titles as download-to-own for $19.95, several dollars more than at Warner Archive's site.
Interestingly, TCM.com—the online destination for Turner Classic Movie content—is offering many MOD titles at cheaper $17.99 pricing than the Warner Archive site. Mating Game and Once Upon a Honeymoon are two such titles listed at $17.99 on TCM.com and at $19.95 on Warner Archive. Allied Vaughn continues to oversee MOD operations for Warner titles sold through TCM.com.
Seeing the appeal of the Warner Archive business, more content suppliers will be setting up their own MOD direct-to-consumer storefronts shortly, according to Allied Vaughn. The company is currently negotiating with one major media company to offer a wide range of titles, new and old, via MOD starting this fall. Allied Vaughn also is in talks to handle new MOD businesses for two TV networks.
Although individual title sales are tiny, studios can stand to score much more return on their investment on titles delivered through MOD than through the traditional supply chain.
“Our ROI analysis shows that a disc sold through MOD will be three times more profitable than the disc sold down the traditional sales channel,” said Doug Olzenak, Allied Vaughn president. “The fact of the matter is that there are more titles out there, but traditional retail distribution channels are not designed to handle them.”
