Genius builds business, VMI system
Weinstein Company's Derailed first title tracked
By Susanne Ault -- Video Business, 3/31/2006
MARCH 31 | Concurrent with the release of its first The Weinstein Company film, Derailed, Genius Products became one of the few indie suppliers to service retailers with a vendor managed inventory system.
The launch is somewhat of a vindication for Genius, formerly best known as a budget supplier. The company raised eyebrows around Hollywood late last year when it partnered with Weinstein for a new distribution venture.
Current Genius operations folded into the entity, which services both Weinstein and Genius titles. Ongoing Genius lines include TV Guide- and AMC-branded classic content.
“Why would the Weinsteins go with Genius, who doesn’t have a VMI system?” Genius Products CEO Trevor Drinkwater asked. “We actually proved everybody wrong.”
Within 90 days of announcing the Weinstein alliance, Genius built its VMI infrastructure, through which it can constantly track stock and replenishment at major retailers. The likely start-up costs ranged between $300,000 and $500,000.
On Derailed, Genius managed inventory for four accounts, including mass merchant and specialty chains. Genius will soon add two more accounts to its VMI service, said Drinkwater.
The company said the title, starring Jennifer Aniston and Clive Owen, sold 2 million copies, including rental units, during its March 21 street week.
Derailed also marked Genius’ first TV advertising campaign.
To supervise its advanced retail relationships, Genius also hired 40 staffers within three months, including executive VP of sales Mitch Budin, who hailed from a similar post at DreamWorks Home Entertainment.
Genius should be on track to rake in as much as $370 million in revenue in 2006, according to sources. Much of that is due to the Weinstein infusion of a projected 20 theatrical releases and 20 to 30 DVD premieres.
During the first nine months of last year, prior to its Weinstein pact, Genius’ titles generated $15 million. Drinkwater declined comment on the 2006 outlook specifics.
“There’s a big difference now between us and our peers,” Drinkwater said. “We have a significant flow of high quality theatrical releases. They don’t have Hoodwinked or Scary Movie 4.”
Animated Red Riding Hood satire Hoodwinked is slated for DVD release on May 2. Horror flick Wolf Creek and Oscar-nominated Mrs. Henderson Presents arrive April 11 and April 18, respectively.
The latest Scary Movie installment premieres theatrically on April 14. DVD details aren’t yet available.
On March 31, Genius will move into larger Santa Monica, Calif., offices. It’s also still in hiring mode.© 2009, Reed Business Information, a division of Reed Elsevier Inc. All Rights Reserved.