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East Coast Video Show Session Added

23 Sep, 2003 By: Thomas K. Arnold

In response to the growing importance of the previously-viewed DVD market to independent retailers, East Coast Video Show organizers have made that topic the focus of the general business session and tapped Video Store Magazine editor-in-chief Kurt Indvik to moderate.

Key retailers will discuss “What Every Retailer is Facing: Transitioning from VHS to DVD — Managing Monthly Purchases and Selling Excess Inventory” on Sept. 30 from 4:15 to 5 p.m., replacing a panel discussion about TV shows on DVD.

Video Software Dealers Association president Bo Andersen also will deliver his annual “state of the industry” update during the business session, beginning at 3:30 p.m. Andersen will discuss such issues as piracy, file-sharing and DVD patents.

The Indvik panel will feature retailers from the Eastern seaboard tackling the issues of how the burgeoning market for previously viewed DVD has hastened the transition from VHS. Retailers will share experiences, ideas and strategies on how to profitably migrate one's business from VHS to DVD and maximize the selloff potential of used discs. The discussion also will address how previously-viewed DVD revenue projections affect front-end budgeting and buying decisions.

“Selling previously-viewed DVDs has become a significant profit center for rental dealers of all sizes,” Indvik said. “You're seeing a growing commitment to the category across the retail landscape, from single-store operators to big chains like Blockbuster, which in recent weeks has been peppering the airwaves with radio spots about the virtues of buying used discs.

“For independent retailers, previously viewed also offers a convenient way to break into the sellthrough market, since this is one area in which the mass merchants simply can't compete.”

Video Store Magazine market research projects that rentailers will derive 10 percent of their total revenue this year from the sale of previously-viewed home video product, most of it DVD. That's up from 8 percent, or about $1 billion, in 2002, when the PVV market was still tilted in favor of VHS.

Sellthrough-priced DVD (and, increasingly, VHS) has provided retailers with a cost-effective way of increasing copy depth, and research indicates studios are shipping nearly 40 percent more copies of their biggest hits into rental stores than they were five years ago.This additional inventory is providing rental dealers with increasingly big “opening week” rental proceeds and a lot more inventory to sell off three or four weeks down the pike when rental demand wanes.

Panelists for the new session have not yet been announced.The East Coast Video Show is produced by Home Entertainment Events, a partnership between the VSDA and Advanstar Communications, which also publishes Video Store Magazine.

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