VIDEO SOFTWARE DEALERS ASSOCIATION '99 by Peter M. Bracke

What Is The VSDA?

Established in 1981, the VSDA is a not-for-profit international trade association representing more than 3,500 companies throughout the United States, Canada and 22 other countries. Membership comprises the full spectrum of video retailers, as well as the home video divisions of all major and independent motion picture studios, video game and multimedia producers, and other related businesses which constitute and support the home video entertainment industry. The VSDA Convention is an annual event designed to facilitate industry growth by giving VSDA members a chance to meet their peers and showcase their products. General activities include seminars, panel discussions, exhibition booths, as well as after-hours festivities. (In other words, the VSDA is one big schmoozefest filled with lots of industry brown nosing, smiling has-been celebrities signing video box covers and, oh yeah, the adult exhibitions no one will admit going to... -Editor)

The VSDA Losing Its Luster? The main enterance lobby, 11:20 am. If it looks empty, it was...

The First Day - A Lack Of Enthusiasm?

Well, the big news this year is, well, the general downturn in attendance and overall lack of industry enthusiasm for the Expo. I'll be honest and admit that it was generally true. After attending the recent E3 Entertainment Expo (which focused on the latest in the gaming industry) at the same LA Convention Center location just a few weeks ago, and comparing it to the VSDA, when I arrived I actually thought I may have penciled in the wrong day. Unlike the bustling activity and gigantic and impressive exhibits of E3, the VSDA felt close to a ghost town. I'm not sure why the industry has begun to turn away from the event, and why prior attendees Buena Vista, Twentieth Century Fox, MGM and Artisan numbered amongst the higher-profile no-shows. Alas, it was generally true that the show had a business-as-usual, almost downtrodden air to it.

General Trends - Positive and Negative

However, in positive news, DVD had a much better showing this year, with a high level of excitement (see last year's VSDA '98 report for more). Though VHS was still the most prominent format, all the major distributors and most independents had a large and supportive DVD presence. And unlike last year's party line of "its still a developing market" or "we're just getting started in that area," there was a palpable sense of anticipation and realization that DVD is big news. I think all in the industry realize that DVD has truly arrived as a major, mass-market product. And, thankfully, the word DIVX was rarely heard, and when it was it was usually reduced to the butt of a joke.

However, despite the increasing enthusiasm for DVD displayed during the first day of the show, I still sensed a bit of hesitation and trepidation by some studios towards fully embracing the format. It was one of those vague feelings that though all involved revealed some solid 1999 plans, the "big guns" are mostly absent, and the studio no-shows like Buena Vista and Fox have come under fire recently for their generally lackluster commitments to the format. Maybe the often-conservative home video industry does not always embrace change, and in casual conversations with reps on the floor, it is clear that issues such as rental revenue, cannibalization of the VHS market and the reselling of catalog product (not to mention cost and quality issues inherent in the increased features demanded by the educated DVD consumer) are tje major problem areas for 2000 and beyond.

So, those expecting a deluge of the top-tier titles from most of the studios catalogs may be in for a disappointment. Importantly, the success of DVD it seems may also be a large factor in the reticent of many to open the floodgates and issue massive qualities of their libraries to DVD. The format is poised for great things, and the slow, methodical and well-planned rollout of a studio's back catalog will not be undertaken lightly. I got a direct sense, especially from studios such as Paramount, that they are getting their feet wet slowly in the format, taking things one step at a time, almost month by month. From getting the production issues down, assessing the growing rental market to integrating more value-added (i.e., supplemental features), I got the sense that for many, DVD is an incremental rather than explosive process to finesse.

Preshow Activities

	The incredible Yo-Yo Girl. Hey, you gotta entertain yourself somehow at these shows!.

Before I go on to the Day One activities and Studio Scorecard, a brief mention of some of the VSDA preshow activities is worth a mention. On Tuesday July 6, I attended the biannual DVD Video Group meeting. To be honest, I was surprised I was invited, since it is made up entirely of industry attendees, But I graciously accepted. Bill Hunt of The Digital Bits was also there and gave a really fine presentation on DVD consumers and some important issues, especially 16x9 enhancement and the lack of standardized features and packaging.

The meeting had a upbeat feel, and as a whole I had a good feeling that all the studios in attendance were seriously committed to the format, and wanted to see it grow. However, I was disappointed that the no-shows were pretty much the usual suspects, namely Buena Vista and Twentieth Century Fox. Since The DVD Video Group is basically the "umbrella organization" dedicated to helping shepherd the DVD format and the industry, and the fact that both Fox and Buena Vista are DVD Video Group members but didn't bother to show up is somewhat troubling. It is clear, to me at least, that they are just not as committed yet as the other studios and manufacturers to DVD. (Don't act so shocked.)

Another studio no-show was Artisan, but apparently they had a different trick up their sleeve. On the Tuesday eve before the show, they held their own little fete and announced some of the fall VHS and DVD slate (see the Studio Scorecard in the next section for more on that). Aside from the Artisan bash, there was a Wednesday VSDA national board meeting, which featured the reelection of Chairman Mark Vrieling, as a well as the induction of a host of other new members. Unfortunately, the board voted down the idea of appointing other directors and members to represent the DVD and online retail segments. Maybe next year...

And on Thursday morning, to kick off the show, VSDA President Crossan "Bo" Andersen gave the keynote address, touching on such topics as the VSDA's renewed commitment to the independent retailer (which is being put out of the business by the big chains left and right) as well as the excitement being generated by DVD. I would love to say I was there bright and early to hear the keynote address, but, well, getting up at 9am is really difficult for me. Oops.

Day One

Well, onto the good stuff, and a rundown of some of the studios upcoming DVD holiday plans. Let's go on to Day One!

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