Video Retailers Prep For Record Season At Ecvs

Set as the kickoff to what is expected to be the best holiday quarter in home video history, this year's East Coast Video Show (ECVS) is primed for several thousand attendees. The conference takes place Sept. 30-Oct. 1 at the Atlantic City (N.J.) Convention Center.

>Themed "The Power of Knowledge," the industry's largest regional trade show will include a mix of cutting-edge business seminars, exhibitor-sponsored social events and 100-plus exhibitors, including home and adult video studios, distributors and suppliers (see spotlight, page 55).

ECVS "will be another opportunity to continue the explosive growth the home-video industry has seen this year," predicts Bo Anderson, president of the Video Software Dealers Assn., which is presenting the show. "It will help retailers get an even better fix on the fourth quarter, with the highest number of $100 million-plus box-office grossers ever released in a holiday period."

Equally important, Anderson says, is the growing demand for non-theatrical product "that is coming in ways that five years ago no one would believe," he adds. "Retailers are thrilled about it and getting an excellent return on investment."

Retailers say they find the show the perfect kickoff to the holiday season.

"The ECVS is a unique networking opportunity for all retailers," says Todd Zaganiacz, owner of indie the Video Zone. He opened the store in 1995 in South Deerfield, Mass., after beginning his career in 1990 as a manager for Trans World Entertainment's Saturday Matinee chain. Elected to the VSDA board earlier this year, he also was a co-founder of the 5-year-old, 61-member New England Buying Group that includes indie stores in 10 states.

Zaganiacz projects the holiday quarter "as the largest we've ever seen, coming on top of our great year to date."

He recalls ordering more than 75 of the initial DVD titles when Warner Home Video had its national rollout in fall 1997. DVD now represents more than 60% of his sales and rental business. The store also jumped on videogames early, which account for about 10% of revenue. And sales have been increasing since he began an active buy/sell/trade program.

Zaganiacz saw an early start for the holiday season with New Line's release of the double-DVD "The Lord of the Rings: The Two Towers" special edition this month. He is also bullish on Buena Vista's blockbusters "The Lion King" and "Finding Nemo," as well as the studio's "Pirates of the Caribbean: The Curse of the Black Pearl."

Others that should do well include Fox's "X2: X-Men United"; Warner's "Matrix Reloaded," which will street about three weeks before the third installment of the "Matrix" trilogy hits the big screen; and Paramount's "Indiana Jones" trilogy boxed set.

Speaking for all indie owners, Zaganiacz points to two major continuing industry problems. "The 'big box' chains are typically low-balling new releases by as much as $5 below the [minimum advertised price], as they don't care about losing out on co-op funds," he says. "How can [indies] compete with that when most consumers are just looking for the best price?"

Zaganiacz notes that street-date violations are always an issue, asking, "What happens when a major competitor breaks a strict deadline for a blockbuster title, and all the studios do is wring their hands?"

New VSDA Institute Program

One of the ECVS program highlights will be three 30-minute previews of courses offered in the new VSDA Institute Certificate of Training Program, a comprehensive curriculum for store managers focused on vital areas, with materials written specifically for video retailers.

Membership VP Mark Fisher explains that the multimedia program—primarily online training and in-person sessions—does not have any required courses.

Participants can elect three from a list of what will eventually be nine electives to complete their certification. Courses are $30.

The first two courses were introduced at the annual August Sunsplash event in Myrtle Beach, S.C., with 18 graduates of the first two classes, "Hiring the Best" and "Training Your Staff."

"Most of our members got into this business over the years without business experience or training, and it was really seat-of-the-pants learning," he observes. "We know it will help our members long term to run their stores more efficiently with a truly professional staff."

More Growth PREDICTED

All this comes against the backdrop of the Consumer Electronics Assn. projection that more than 50% of U.S. households, or about 52 million, will have a DVD player by year's end.

In addition, Billboard sister publication The Hollywood Reporter, citing a recent study from Centris, reports that videogame consoles supporting DVD playback will have an important impact on future DVD sales.

At the August DVD Entertainment Conference in Los Angeles, International Recording Media Assn. president Charles Van Horn forecast that 80% of U.S. homes—some 85 million—would have DVD playback capability within three years. Pam Danziger, U.K.-based Understanding + Solutions analyst, noted that while the market will grow solidly in units, it will dip in dollars as prices continue to drop, with older titles discounted more rapidly.