Wal-Mart Blowing Out 'Shrek 2'8 Aug, 2005 By: Jessica Wolf
Stung by bad press on lower-than-expected sales and higher returns of Shrek 2, DreamWorks apparently has shut the door on VHS returns of the animated blockbuster. Wal-Mart stores are blowing out cassettes at $2.88 each, as well as surplus copies of Shark Tale.
A source familiar with the situation said DreamWorks “has a huge number of leftover cassettes” and doesn't want to take them back.
Visits to several Southern California Wal-Mart locations revealed the rock-bottom pricing on the two titles.
DreamWorks was hit hard earlier this year when first-quarter sales of Shrek 2 failed to hit the 37 million mark the studio had projected, albeit by just a few million units.
The company attributed the Shrek 2 miscue to an overall droop in catalog DVD sales, which resulted in larger-than-expected returns from retailers. Execs said DreamWorks will likely not see revenue from Shrek 2 video sales until the fourth quarter, after the studio's home video distributor, Universal Studios Home Entertainment, recoups its costs.
DreamWorks and Wal-Mart representatives did not response by press time.