Early Releasing (Breaking Street Date)

[milk114]

So this was the second weekend in a row that I went into Second Spin and found a tv boxset that I wasn't aware had come out only to discover that they put it on the shelf early. Last weekend Fraggle Rock season 2 and this weekend The Office season 2. Not that I was necessarily on the lookout for them, but...

What are the "rules" about when stores are to release dvds? Is waiting till Tuesday morning part of a contractual obligation or just standard operating procedure? Could the distribution companies, if they discover habitual early releases, come down on a store? And if there are rules and so forth, what about pre-orders that are shipped and arrive before the street date?

Just curious. thanks.

[Antoine Doinel]

Generally, stores or distributors receive product before the official release date so they can put it out the day it goes on sale. They are bound usually be a signed contract not to put it out earlier and usually the repercussions are that if you're caught, you won't receive new releases before the release date which can be a huge blow.

When I was younger there was a record store I frequented that routinely sold new releases the Friday before the release date to preferred customers from behind the counter. Also, I've often found promo copies of new CD releases prior to release dates in used record stores thanks to reviewers who, once they're done with the disc, have sold it second hand (again, something you're technically not supposed to do, but that happens all the time).

I'm not sure what or how large a chain Second Spin is - but if it's a small DVD store I'm not suprised that they would try to get the jump on the Best Buys of the world who will probably be undercutting their price come Tuesday. The studios would probably only be monitoring the big box stores anyway to make sure that they aren't shelving this stuff early.

[Cinesimilitude]

then again, I've been told that when big chain stores release something early, any reprecussions (fines or not receiving discs until release date) get thrown out the window cause walmart will actually threaten to sto carrying a studio's dvds altogether if that were to happen.

[Matt]

then again, I've been told that when big chain stores release something early, any reprecussions (fines or not receiving discs until release date) get thrown out the window cause walmart will actually threaten to sto carrying a studio's dvds altogether if that were to happen.

Well, sure, at that level it's all bluffing. No studio would dare keep DVDs out of a major chain store until after the release date, but no chain store is going to intentionally and repeatedly break a contractual agreement with a major supplier (even if the only repercussions are that the studio teams with the competition for their special exclusive release in a collector's tin).

The only ones repeatedly breaking street dates are mom and pops and small/regional chains because they are usually too small to take notice of and can get away with it.

Of course, some studios/distributors seem not to care about street dates. Criterion certainly seems not to.

[Cinesimilitude]

I wonder how much more money they would be able to make to sell the discs directly to us, 2 weeks early, at a reasonable price. A lot, I presume.

[Matt]

I wonder how much more money they would be able to make to sell the discs directly to us, 2 weeks early, at a reasonable price. A lot, I presume.

It would be offset by all the staff they'd have to hire to fulfill orders. It's a lot easier for them to just let Image handle everything. Of course, you used to be able to buy laserdiscs directly from them. I think you even got a 10% discount if you ordered 3 or more.

[Antoine Doinel]

I wonder how much more money they would be able to make to sell the discs directly to us, 2 weeks early, at a reasonable price. A lot, I presume.

Actually, probably not that much. The margin on DVDs - even Criterion - is ridiculously slim. Retailers and e-stores already get upwards of a 45-50% discount depending on many factors including the volume they can move. Obviously, Amazon, Best Buy and various etailers can move the kinds of units to get a decent discount. Amazon probably makes the most margin wise, because most shoppers buy from them because its a trusted brand. They can get away with selling for only 10% or 20% off retail once the item streets. The smarter Criterion shopper pre-orders and saves a hell of a lot but not everyone is that savvy.

However, etailers like DVDPlanet, Deep Discount etc - who are offering Criterion titles for considerably less than Amazon - are also making a lot less per disc. It's an circular game. They go to Image and order a thousands of titles asking for a big discount, they get it and in turn they offer a sale or huge discount to their customers but only making a very small margin. And with the next wave of titles, the cycle continues.

There would be no reason for Image to deal directly with a bunch of Criterion fans by offering the discs early at a bit of an extra discount, because the volume wouldn't make it worthwhile economically. And if they are already moving those units (and more) via Amazon, DVDPlanet, etc etc etc it would simply be a lot of extra work, for what would be in Image's eyes, very little gain. It's not like you're not going to end up buying the discs anyway.

[Toshiro De Niro]

I bought The Last Voyage at Circuit City a week ago, but the official release date is Oct. 24 and it doesn't seem to be available anywhere else...