April 19, 2005

Fox Execs Make Store Checks to Hone DVD Marketing Efforts

The Los Angeles Times has a great article about how Marketing execs at Fox make frequent store checks to better gauge their merchandising and marketing efforts. The article sheds an interesting light on marketing DVDs in a big box environment:

"Men usually buy two or three, while women walk away with one," observes Mike Dunn, president of the division. "Eye level is not always the optimal position — low is good for kids," adds Simon Swart, who heads up sales.

"The worse the weather, the better for business — unless, of course, it's a blizzard," Senior Vice President Steve Feldstein says.

Here's another bit of wisdom:

In the store, packaging and labeling missteps became obvious. Type positioned too far down could be obstructed by store shelving, Fox executives found. "Long boxes," developed to discourage shoplifting, solved that problem. But after the monotone black was found to be a consumer turnoff, they now get a four-color treatment.

For all of the DVD Marketers out there that can't afford endcap promos, custom displays or even face-out fees, remember to pay attention to your spine -- that's how most smaller retailers get displayed, and its easily overlooked.

Chicago Tribune | Coming soon to a store near you: Fox executives

February 11, 2005

Racy 'Harold and Kumar' DVD Poster Stirs Free Speech Debate

According to the St. Louis Post-Dispatch, racy posters advertising the 'Harold and Kumar go to White Castle' DVD have riled up some of the faculty and student body at Southern Illinois University - Edwardsville.

The poster, which advertises DVDs of the movie "Harold & Kumar Go to White Castle," depicts the torso of a woman, whose face isn't shown, with a DVD - one for the regular version of the movie and one for the unrated version - covering each naked breast. The poster reads, "Either way, you score."

The poster was placed in campus common areas by 360 Youth, a New York-based ad company catering to the college market. Several other unnamed universities have already pulled the ads, but SIU Edwardsville has not made a final determination yet. The ads have spurred a free speech debate on the campus, and the school's paper has rallied behind the ads. However, the school has said they will pull the ads if a majority of the students and faculty call for it.

Whatever the final outcome may be, one thing is certain: the ads, though tacky, have definitely been effective. While suggestive, the ads are not really any worse than a swimsuit issue, and they definitely capture the attention of their target market. In fact, compared to the relatively tame, off-target key art for the theatrical release, the DVD ads have been well thought out. This is just one more example of studios rethinking the DVD campaign on its own terms, especially when the theatrical campaign underperformed.

Racy ads stir free speech debate at SIUE

February 03, 2005

Universal to Release an NC-17 version of 'Seed of Chucky'

According to Fangoria, Universal will release an NC-17 cut of 'Seed of Chucky' on DVD in addition to their upcoming R-rated version. Although X and NC-17 ratings have been slapped on theatrical releases as a marketing tactic for years, this is the first time a studio has attempted it with a DVD release. Don Mancini, the film's writer/director, commented:

Using the controversial NC-17 tag is a bold and largely untried move, and Mancini acknowledges, "This is all pretty new to me, this whole arena, because this is the first movie I’ve worked on where they’ve done this sort of thing. But it’s certainly not a case of the studio not having confidence in the movie—quite the contrary, they’re very enthusiastic about this version of the film. They just felt that as a marketing hook, going with the NC-17 would be a lot more fun."

This may be an inadvertent side effect of movie marketers getting fast and loose with the term "unrated." An NC-17 rating is a seal of approval for those seeking titillating content.

Fangoria - Seed of Chucky to be Releases in an NC-17 Version

January 11, 2005

Warner to Introduce Value-Priced TV on DVD Titles

As the studios continue to exploit their "A-list," margin-fattening TV on DVD titles, Warner has decided to release a slew of lower profile titles at a discounted price point. Up until now, complete TV on DVD seasons typically retailed between $40 and $60 dollars. Warner is bowing the first seasons of Full House, Fresh Prince of Bel-Air, Murphy Brown and The Jamie Foxx Show at $29.95. Some buyers are skeptical of Warner's motives:

"The lower price on the first seasons should hook consumers into purchasing more of the other seasons," Video Buyers Group president Ted Engen said.

Newbury Comics buyer Larry Mansdorf quipped, "It could be the drug dealer mentality, where you put out the first one real cheap and that will hook you in [for the rest of the series]."

I fear for the person who equates Full House, Fresh Prince of Bel-Air, or Murphy Brown with crack.

DVD Exclusive Online

October 22, 2004

Emerging Trend: The DVD-based Game Sector

I've seen an ad for the game "Sceneit?" somewhere before , but this is the first article I've seen about Screenlife, a Seattle-based company that has pioneered the DVD-based gaming industry. Basically, their biggest title, Sceneit? is a trivia game that utilizes movie clips on specially-formatted DVDs.

The Seattle Post Intelligencer notes the quick emergence of the DVD-based gaming category:

When Screenlife launched its first DVD-style game in 2002, chief operating officer Dan Black said the market was worth about $1.5 million. Now, DVD-based games are expected to top $200 million this year, with Black estimating that SceneIt? will capture half of the market. To keep up with demand, the company's staff has tripled in the past year and plans to more than double in the next 12 months.

With 90 million DVD players in the US, this is a great opportunity to develop a "new use" paradigm, and it looks like an opportunity ripe for the pickin' by all of the rights holders out there. Now granted, when compared to the aggregate DVD market right now, $200 million dollars doesn't seem like much. But think about the recent meteoric rise of the TV-on-DVD niche. That sector has gone from a negligible figure in 2001 to probably in the neighborhood of 15-20% of DVD revenue today.

With a little marketing creativity, DVD-based games can become as popular as Trivial Pursuit was in the 1980s.

Popularity of DVD games spells success for Screenlife

October 20, 2004

Flexplay gets Acquired, Announces the First "Trimultaneous" Release

Flexplay, the self-destructing DVD manufacturer, has been acquired by the Convex Group according to a recent press release. Even more interesting than that? Convex is playing with some new distribution models:

The first original motion picture to be nationally released on the Flexplay platform is NOEL, a star-studded holiday drama that premiered recently at the Toronto Film Festival. Directed by Chazz Palminteri (A Bronx Tale, Bullets Over Broadway) and written by David Hubbard (Delivering Milo), the film stars Oscar( winner Susan Sarandon (Dead Man Walking, Thelma & Louise), Penelope Cruz (Head in the Clouds, Vanilla Sky) and Paul Walker (The Fast and the Furious, Pleasantville).

The Convex Group's distribution of NOEL marks the first "trimultaneous" release of a feature film, designed to offer consumers multiple viewing choices while also generating awareness about Flexplay. This innovative distribution strategy extends through the 2004 holiday season, including a limited nationwide theatrical release beginning November 12; a special one-night-only airing on Turner Network Television (TNT) on Sunday, Nov. 28, at 8 p.m. (ET/PT); and simultaneous online availability of the NOEL on Flexplay DVD exclusively through Amazon.com.

Flexplay has had mixed results with test marketing this year, but Convex looks like they're willing to get more aggressive. I'm a bit skeptical of the Flexplay model though -- there's a ton of competition from VOD, online renters, cheap store rentals and the used disc market. Combine those roadblocks with the daunting task of educating consumers and it's easy to see what I mean.

I do anticipate some interesting promotional uses in Flexplay's future. How about a contest disc with hidden clues? Or maybe a partner can "seed" the public with sneak peak discs of an upcoming release to ferment buzz (as opposed to renting theaters). I'm still wondering why they aren't getting their discs used as award screeners by the studios though...

MCN Press Release: Another Distribution Variation

September 28, 2004

Emmys Integral to HBO's DVD Marketing Efforts

We all know about the "Oscar" bounce for theatrical titles, but here's some interesting info about how the Emmys help HBO's marketing from Yesterday's Broadcasting & Cable Magazine:

But it's only in the DVD business that HBO execs expect to see any direct correlation between the Emmys and business. While an Oscar may boost the box office for a movie still playing in theaters, HBO executives say Emmy awards have no evident effect on their subscriber sales.

"We do sell ourselves on the quality of our programming," Strauss says, "so anything that burnishes the brand and shines it up you like to have."

The article describes the massive amount of Emmys won by HBO, and then goes on to describe their impact on the DVD market:

The DVD market offers HBO its biggest payoff. HBO Video President Henry McGee loved the exposure of the miniseries' sweeping all four acting categories it was eligible for, sending co-stars Al Pacino, Meryl Streep, Mary Louise Parker and Jeffery Wright up to the stage. "Emmys can be very helpful in focusing on a program," says McGee, "particularly for HBO, when we're in approximately 30 million homes, just a fraction of TV homes."

The Sopranos and Sex and the City have moved so many DVDs that the network nearly recouped the entire production costs of early seasons from DVD sales alone. (The bar was raised when actors got raises in the later seasons.)

That was unimaginable when HBO approved and budgeted the series. Including DVDs, syndication and theatrical movies, more than 20% of HBO's revenues is from sources other than subscription TV.

The network has high hopes for Angels DVDs, but HBO won't likely match the success of The Sopranos. "Angels is a $60 million project. You would never expect to recoup that in ancillary markets," McGee says. But, he adds, HBO does hope to attract new viewers as the acclaim for Angels spreads.

HBO is in an enviable position -- they've got the Midas touch right now. Sure, maybe Carnivale wasn't as hot as it could've been and maybe Arliss has been limping along for the last five years, but when you square that with the hits -- that's pretty enviable.

Name one theatrical studio that has the cachet of HBO right now...

Broadcasting & Cable - Angels, Emmys and DVD

August 20, 2004

'Goodfellas' Cast Breaks Bread to Promote DVD Release

Missed this one earlier in the week -- nice, PR-friendly and cost-effective promo for the 15th anniversary DVD of 'Goodfellas':

The theme was "breaking bread, not legs" when some of the cast and filmmakers of GoodFellas reunited for dinner this week. Ray Liotta, Paul Sorvino and real-life mob informant Henry Hill -- whose experiences inspired the story -- showed up to eat baked ziti, swap stories, sing some Italian opera and recall director Martin Scorsese's acclaimed mob movie.

This just goes to show you - a little creativity in DVD marketing can go a long way - over 76 article placements this week...Concord Monitor Online

Bollywood titles fill On Demand Niche

Seasonal and topical themed collections aren't anything new to VOD, but New York-based 212 Media and Schramm Sports & Entertainment have upped the ante with 'Bollywood on Demand.' Their special collection features Bollywood movies, series and other special events on the Comcast and Time Warner Systems. A quick survey of the MMB's own Time Warner box shows a nice selection currently available.

As VOD offerings increase, packaging offerings as niche collections will boost repeat purchases and drive program loyalty. If you look at the DVD business as an example, you'll notice that the companies with the greatest brand loyalty specialize in "enhanced collections. The fans of companies like The Criterion Collection will buy an unknown title purely on the strength of the brand. While they may not bring in huge sales figures like a Columbia/Tri-Star, their editorial expertise and emphasis on quality has helped Criterion build a sizable measure of trust with their consumer base. I guarantee you that when DVD growth drops from 44% this year to around 8% in 2008, Criterion will still show steady, stable growth with intense brand loyalty.

So what can VOD marketers learn from DVD niche marketing? If anything, the shift to a la carte offerings means that the studio brand will become increasingly important -- better to be the master of your genre (i.e. Dimension) than a broad-based player. We may see a mini 'balkanization' at the studios as branding grows in importance. Why? It's simple -- if you have to pick from thousands of unknown titles, genre signifiers will be truly important. And to all of you indie moguls-in-waiting, I say to you: pick an underserved niche, and ensure you lock up PPV and internet rights!

As an aside, I would also expect third-party information providers (like Muze or Rotten Tomatoes) to grow in importance as they will eventually become integrated into VOD menu systems. Look for a major deal in that space in the coming months...

'Bollywood on Demand' on US cable - Indiantelevision.com's Breaking News

August 11, 2004

Today's Must Read: Studios Spent $887 Million Marketing DVDs Last Year

The Hollywood Reporter has a must-read article on the ever-increasing marketing costs associated with DVD releases. Here's a little taste:

Industry analyst Tom Adams of Adams Media Research is not surprised by the overall spending numbers. According to his company's figures, studios are earning about 60% more upon initial release from video sales of theatrical feature films than they did during the VHS-only era. Among movies that earned more than $100 million at the domestic box office, the average home video yield last year was $152 million, a 71% increase on the comparable $89 million average in 1997, the year DVD launched.

Here's a nice breakdown of spending by sector:

There is one thing on which most studios agree: Allocating marketing dollars to the small screen makes sense. Nearly 80% of video marketing expenditures last year were for television commercials, with broadcast and cable in the lead at $385 million and $222.8 million, respectively. DreamWorks Home Entertainment spent the highest percentage of its marketing budget on network TV (58.3%), followed closely by BVHE (53.2%). Fox led percentagewise spending on cable television (37.8%), followed by New Line (31.4%).

Even though this article is about the "big fish," Indie DVD marketers should read it to see where the big money's not being spent -- in particular, niche, small circulation magazines/fanzines with favorable CPM costs, online contextual advertising and Blogs. The online sector is especially important for those unable to spend more than a few grand in advertising and need an effective way to manage ROI.

Home entertainment marketing

August 10, 2004

Columbia TriStar Reignites Colorization Debate with New 'Three Stooges' DVD

Here's a hot story making its rounds on the wires: Columbia TriStar's home-video unit will be releasing a 'Three Stooges' DVD including colorized and black-and-white film versions:

"The best thing about this DVD release is it gives the consumer the ultimate choice," said Suzanne White, vice president of marketing for Columbia TriStar home entertainment. "They can watch the very best, the finest restored image of the black-and-white version, or watch the new colorized version and switch instantaneously between the two."

According to the article, this new release isn't like the Turner colorization fiasco of the mid 80s -- today's colorization technology is vastly improved, and the studio actually did some research this time out. This isn't the first colorization effort this year (The History Channel's 'Time Machine: World War I in Color' Series has been airing since the spring) but it does represent the first colorized DVD release.

Is this a savvy DVD marketing move? First off, the massive amount of publicity will definitely benefit the stagnating stooges, who rarely break out of their rabid fan base.

Second, it gives the studios one more "bite at the apple" -- an excuse to re-release all of their B&W B-list titles. After all, we're not talking about colorizing 'Citizen Kane' or 'The 400 Blows' -- It's a couple of goofy, dated slapstick movies.

I personally would love to see an overtly artistic colorization attempt on a 1950s atomic scare or hygiene film, but hey -- that's just me.

Boston.com / A&E / Movies / Stooges digitally painted on DVD

August 04, 2004

DVD Successor 'Blu-Ray' Outlines Format Specs

Looks like the format squabbles around DVD successor "Blu-Ray" are settling down enough to agree on some specs. With only a few more wayward companies and their competing strategies to bring into the fold, it seems 'Blue-Ray' will become the new standard. Or we might have the "Beta vs VHS battle" redux. It's hard to predict, as usual.

As movie marketers, most of us here at the MMB should be excited about next generation media. But we're also weary consumers, and having just replaced our extensive collection of 8 tracks for these new-fangled "cassette tapes," we have just two words for the tech heads at Samsung, Sony et al: Slow down! Talk with your colleagues on the consumer side of the PC business and ask them how much real demand there is right now for 5 GHZ processors, 1 Terabyte hard drives and 2 gigs of ram. Have the software manufacturers looked to exploit these capabilities yet? If you read the minimum required specs on most software packages, the answer is obviously no.

The same thing goes for Hollywood. Do you really think Hollywood is ready to shell out billions of dollars for repurposing all their old content to HD when the DVD goldmine hasn't been tapped out yet? Can most of these works even be repurposed for HDTV? Are they willing to invest their hard-won profits on new production equipment without any real demand yet?

We're not trying to stand in the way of progress -- we love any technology that improves the entertainment experience -- but as the old saying goes, "timing is everything."

Related Links:
Blu-Ray Standards Homepage
Digit Magazine Online

July 22, 2004

Fox Offers Bulk 'Passion' DVDs to Churches

According to the USA Today, Fox has been successfully pre-selling 'Passion of the Christ' DVDs in bulk to churches. The article describes their unorthodox marketing tactics:

In an unprecedented move for a Hollywood studio, Fox sent fliers to hundreds of thousands of churches inviting them to buy special packs of 50 DVDs. Fox won't release numbers about the program; spokesman Steven Feldstein says, "This film brought people to the theater that normally don't go to movies and will also bring people into the DVD purchasing pool who weren't there before."

Fox is even doing a bit of "co-branding":

Groups placing large orders can buy customized slipcases (99 cents each) with two lines of printing, such as the church's name. "Fox felt that they could rally the churches to use it as a ministry tool," says Laura Neutzling of Nashville-based Word Distribution, which has orders for several thousand slipcases.

While this type of grassroots marketing may be "unprecedented" for a major studio, reaching core demographic groups with mailings and bulk orders has always been the bread and butter of indie movie marketers and home video distributors.

Yahoo! News - Churches buying 'Passion' DVD in bulk

July 20, 2004

Survey: Wal-mart Rings 37% of All DVD Sales in the U.S.

Variety reports that the retail giant is a foundation for recent robust DVD sales figures. According to a recent cosumer survey,

Wal-Mart, the "everyday-low-prices" retail juggernaut, today rings up a hefty 37% of all new DVD purchases in the U.S., according to a new survey of video consumers, and easily writes the biggest check to Hollywood every year.

The article notes that Hollywood should be cautious, because each disc sold is a "loss leader":

For now, Wal-Mart and its peers seem OK losing a few bucks on every disc sold. But that may not be the case forever, and invariably Wal-Mart will insist on a wholesale price cut that could eat into those juicy DVD margins at precisely the time overall disc sales start to slow.

Yahoo! News - Wal-Mart crowned DVD king

July 19, 2004

MovieBankUSA Begins U.S. Rollout of Self-service DVD Rental Outlets

According to Crain's NY Business, MovieBankUSA has signed a lease for their second North American location. The parent company, MovieBank, has been successful with their self-service DVD and video game rental outlets in Europe, and they plan on rolling out the concept in the U.S nationwide. MovieBankUSA's first location is scheduled to open in Manhattan (SoHo) at the beginning of August, with ten more New York City locations to follow. With a Similar design to the large ATM centers, MovieBankUSA locations will offer 24 hour access and multiple rental units. Registered members will be able to reserve copies at home using the internet, and the rental machines will hold the selected titles for three hours. If a title is out of stock, the member will be notified when the title they want has been returned. The machines are designed to hold 500+ titles, with the majority being new releases. Rental prices will be as low as .99 cents per rental for members.

With the anticipated rise of downloadable movies and VOD in the next several years, it seems strange for a new company to make such a substantial investment in "meatspace." But if they do prove popular here in the states, what will the implications be for DVD marketers? Given the limited breadth of selection, it could seem to be a boon mostly for the studios, unless MovieBankUSA customizes title selections based on the tastes of each store's demographics. While not impossible, customized offerings by location is a difficult thing for retailers to execute -- for example, The Gap had some problems last year tailoring their offerings to regional tastes despite their skills in analyzing sales data. The real victim, if this is successful, will end up being the already-battered Blockbuster and other mega rental chains specializing in wide releases.

I will post some pictures of the new location in SoHo when it opens.

Related Links:
Automated Distribution Technologies
The Self-service Revolution
Crain's New York Business

June 24, 2004

Is the Theatrical Release Just a $100 Million Dollar Commercial for the DVD?

Here's a must read piece from the New York Times on the explosive success of DVD sales. I've excerpted a few choice tidbits for your delight.

Here's an important one:

"In the last five years maybe 6 pictures out of 1,000 recouped their cost in the theatrical marketplace," said Nick Counter, president of the studio alliance. "Today the hits have to make up for all the losses."

Not too sure about those numbers. Here's a good place to look and check.

Here's another good one -- remember, that's more than likely a gross margin (still quite good though):

The profit margin for studios is significantly higher on the disk format. A study by Jessica Reif-Cohen, an analyst at Merrill Lynch, found that studios make an average of 66 percent profit margin on the DVD, compared with just 45 percent profit on the videocassette. She concluded, "We believe the perception of low returns on feature film production is no longer valid."

Finally, my personal favorite, and one that affirms that sickening feeling you got when you bought the '20th Anniversary Special Limited Box Edition of 'Porky's'":

But that does not mean the studios do not wring every cent from each movie. Miramax is planning to release a half-dozen different DVD editions related to "Kill Bill." "This is the beauty of having two volumes," said Rick Sands, chief operating officer at Miramax. " 'Vol. 1' goes out, 'Vol. 2' goes out, then 'Vol. 1 Special Edition,' 'Vol. 2 Special Edition,' the two-pack, then the Tarantino collection as a boxed set out for Christmas. It's called multiple bites at the apple. And you multiply this internationally."

...reminds me of the stunts that DC and Marvel comics used to pull in the late 80s to early 90s. Basically, they would release four different versions of the same comic book, each with a different colored cover, and all of them hermetically sealed in a plastic bag. This forced the astute comic book collector to buy five copies at a minimum (the extra copy was for reading...) This DVD phenom is the same concept, (and sometimes the same product with all the superheores on screen these days) with just a much larger consumer base.

Duluth News Tribune | 06/24/2004 | Studios rush to cash in on DVD boom

April 07, 2004

Custom VOD 'School of Rock' Promo

'Mag Rack,' Rainbow Media's Video On Demand Service, will be offering custom feature content in conjunction with the 'School of Rock' pay-per-view release.

Here's a bit from their press release:

As part of this unique multi-platform campaign, Mag Rack will feature on"Guitar Xpress" on-demand guitar instruction for "Smoke on the Water" by Deep Purple, "Sunshine of Your Love" by Cream, plus the film's original theme song "School of Rock." Mag Rack will feature bonus footage from the movie and an original, behind-the-scenes tour of the Gibson Guitar factory in Nashville, which manufactured the signature, cherry red SG model featured in the movie.

This is another example of just how competitive the ancillary market has become -- especially with the advent of shrinking release windows. VOD services are having to come up with value-added content to compete with the DVD release, which will inevitably cause increasing marketing budgets.

Haven't really heard much about Mag Rack before this. What will the effect be? Personally, the whole promo looks a bit too niche-oriented and carries heavy marketing costs due to custom programming, prize giveaways and promotions.

Related Link:
Mag Rack Launches Programming and Multi-Platform Marketing for On-Demand Release of 'School of Rock'