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TK's MORNING BUZZ: Video Retailers Should Have an Academy Award-Winning Month Ahead, Even in the Shadow of Strikes

26 Mar, 2001 By: Thomas K. Arnold

With most of the key Academy Award winners either already in stores or on their way, video retailers should have a good month ahead of them. Having films like Gladiator in stock may even be enough to compensate for the traditionally slow rental season that April typically ushers in, while sales -- thanks to DVD -- should remain stronger.

After that, I see more good times ahead for retailers. The writers' and screen actors' strikes may or may not materialize, but Hollywood is gearing up with contingency plans in which their video engines are running full steam ahead. We're going to see a ton of hot new product come to stores on DVD, much of it in the can anyway but a good portion of which is being readied in the event of a strike.

If a strike happens, it's coming out. If a strike doesn't happen, it's probably going to be released anyway. And as they say in video retailing, the more product the merrier -- except, of course, in those over-crowded fourth quarters, which typically spawn fears that the next quarter will be sparse because all the good stuff has come out already.

No fears of that sort this time. DVD is exploding, and the product chain looks rock solid for many months to come. This, along with the recent stumbles in the VOD camp -- security concerns, the Enron-Blockbuster divorce -- means regular old brick-and-mortar retailers may not be as down and out as many of us might think.

At least for now.

Readers, any opinions?


Comments? Contact TK directly at:TKArnold@aol.com

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