MGM Debuts A Beautiful Price2 Apr, 2002 By: Joan Villa
MGM Home Entertainment has set a $22.50 dealer price for the newly announced A Rumor of Angels, which significantly reduces VHS costs while slightly raising the amount retailers will pay for the DVD.
The 2002 theatrical release Angels, about a boy coming to terms with the loss of his mother starring Vanessa Redgrave and Ray Liotta, will debut on video June 25, with a May 28 prebook date for both formats.
MGM sales executives could not immediately be reached for comment, but sources say the move is one MGM may continue to test for future rental product to preserve the market for VHS while sustaining a strong DVD growth curve.
"Retailers will purchase at least as many or an equal number of VHS to DVD, where before you had a segment of retailers pushing to do away with VHS simply because there was such a big difference in cost," explained Ted Engen, president of 2,000-store Video Buyers Group.
MGM was one of the first studios to eliminate minimum purchase requirements and move to "flat" under-$40 VHS rental pricing on last year's titles Legally Blonde and Heartbreakers.