Studios aim 4Q marketing campaigns - 4th quarter - Special Supplement: Video Sell-Through

Discount Store News, July 5, 1993 by Frank M. Viollis

After more than a decade of skyrocketing sales and unprecedented growth, the $12 billion video industry is facing a fourth quarter that might hold a few surprises for sell-through video retailers.

That's not to say that the major studio producers aren't planning to unleash a host of box office blockbusters into the fourth quarter sales arena.

What it does say, however, is, that like every truly successful venture, the prerecorded videocassette has something of a life of its own. It is a medium that was born out of a need clearly evident in these last days of the 20th Century: a need for affordable, durable, spontaneous entertainment. And, that need has, if anything, increased with the passage of time.

Video producers are well aware of this fact, and are constantly adjusting their marketing strategies to accommodate the ever-changing trends and demands of this evolving medium.

"We've decided to officially announce our entire sell-through line earlier this year than ever before," declared Dennis Maguire, vice president-North American sales, Buena Vista Home Video. "We're giving retailers plenty of time to properly stock and prepare for the fourth quarter.

'We're going with three major films this year," he added. "They will represent 50% of the revenue that retailers can expect from Buena Vista Home Video [the marketing arm for all Disney videos]."

The features, which Maguire categorized as being "tent poles" for Disney's 1993 marketing strategy, will be:

* "Homeward Bound: The Incredible Journey" scheduled for an Aug. 13 street date release;

* "Aladdin" scheduled for a street date of Oct. 1;

* "The Muppet Christmas Carol" to be released Nov. 12.

"These hits will drive sales well through the fourth quarter. There's no doubt about that," he added. "But, that's only half of the sell-through picture. There's a ton of other products that will make up the other half."

Disney is going to offer retailers products at the impulse pricing of $9.99 to $14.99 that will cut across all its brand lines, which include such properties as: "Alvin and the Chipmunks," "Rocky and Bullwinkle," and its most recent addition, the muppet characters of Jim Hensen Videos.

In addition to the seasonal release of "The Muppet Christmas Carol"--which grossed over $27 million during its limited theatrical outing at the end of 1992--Disney is going to offer yet another muppet product into this year's fourth quarter marketing mix.

On July 30, it will debut the award winning children's series, "Fraggle Rock," at sell-through with the release of four titles at $12 each.

"We're not worried about 'Aladdin' generating fourth-quarter sales." Maguire added, "Afterall, it grossed over $200 million at the box office [$32.2 million the week between Christmas and New Year's alone]. But, that's no reason to expect retailers to just take it, and sell it. We're offering a $5 rebate that can be used with any other of our four properties. That's sure to encourage more immediate video purchases."

What's surprising is that "Aladdin" is not the major thrust of Disney's fourth quarter efforts, as it might have been in the past. Disney, like other studios, is clearly evidencing a shift in year-end thinking that allows for the blockbuster, but doesn't rely upon it.

Perhaps the most unique element of Disney's '93 strategy will come Sept. 10. That's when it will make its first entry into the toddler market with the first-time video release of the international children book classic "Spot."

"We've designed a package with a lift flap, so that the child can have both the storybook and the video in one shot. The box," said a Disney executive, "will be a toy."

In recognizing, and acting on this, Disney is highlighting yet another trend that will distinguish fourth-quarter video marketing: the pre-school market.

Obviously, Disney is no stranger to the category of children's video. And, neither is the preschool market niche (see DSN, May 18, 1992).

However, in recognizing the need to further segment that market, many studios are acknowledging a new phase in the pre-recorded video evolution.

"A lot of discount stores are telling us that children's entertainment is the fastest growing video category," pointed out Christine Alvarez, Group Product Manager/Golden Entertainment. "Our whole line is based upon quality children's products."

Introducing millions of children to the printed word has been the mark of Golden Entertainment's pre-school book line. With its entry into the audio and video arenas, Golden is giving more serious attention to quality children's entertainment.

"We're really expanding our sell-through video line this fourth quarter," she added. Golden is offering two new titles in both the "Madelline" and "Precious Moments" series, which both retail at $9.99. It also secured the rights to the famous international storyteller, Robert Munsch, and will announce the release of three titles at the VSDA convention.

Three more will go on sale at year's end, to round out its fourth quarter bid.