VIDEO SOFTWARE DEALERS ASSOCIATION EXPO '98 by Peter M. Bracke

Contained herein is my personal thoughts about the show, official press releases (that have been issued through Business Wire, Reuters, etc.) and a breakdown of general studio trends. Please note that I did not bring a camera...sorry, no pictures! Check out The Digital Bits and DVD Review for more coverage and great pictures galore.

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, free food. - Editor)

Personal Impressions

Basically, the Video Software Dealers Association is a members-only group, i.e., you have to be some sort of company that sells some sort of video software to join. Every year, the VSDA holds its big convention where its members rent floor space and set up their booths promoting their wares. Since it takes place in July, most of the booths are geared towards the holiday season, as that is the biggest selling season of the year. Keep in mind that the convention was not necessarily set up for announcements and such...it is just a general meet and greet and product showcase for its members. Of course, announcements do happen, and many press releases are generated from the show (for example, Universal announced DVD support at last year's convention). But every member who exhibits does not necessarily have anything major to announcement.

The VSDA, though, isn't just all backslapping. There are many excellent seminars and panel discussions going on throughout the show, with many incredible participants. Probably the biggest was the DVD Video Group discussion held on Wednesday. (Go to The Digital Bits for a great synopsis of it...I won't bother repeating it here.) Every major studio is represented, and the VSDA really does allow for some serious think-tank discussions to go on about the future of the industry and the important issues it faces. The big head honchos show up, as do many celebrities who help promote the various release lineups and products. Such luminaries as Jeff Bridges, Robert Duvall, Dan Aykroyd, Jet Li, Linda Blair, etc., showed up this year for the parties, signing autographs and smiling and such. Also, the VSDA is a great chance to meet and network with others in the field. Lets face it, it is true what they say, it is all about connections. It is a kick to put a face to a name...kinda weird to see what Bill Hunt really looks like, huh?

Overall, though, there is a bit of a sense of, well, deflation towards the show. It is like one giant advert, though an admittedly cool one. The gigantic Paramount Titanic ship is a good example...basically high on style but not really about anything. It definately is a BIG convention floor. Analyzing it, it is easy to see how rumors get started. It is very easy to talk to various studio representatives at various booths and hear all kinds of opinions and vague commentaries on where the studio is going and what to expect in the future. However, when one takes a step back, studios have huge infrastructures and every decisions is made by committee. Generally, the VP or other head of a home video division at a studio m makes the decision on what to release and when. Make no mistake, the industry is driven on sales, and right now, sales is all about VHS. DVD represents a very small fraction of sales and does very little to a studios bottom line. Forward-thinkers like Warner invested in DVD for a variety of reasons, but instant financial return is not one of them. It takes a VERY LONG TIME to nurture a format, it doesn't happen overnight. The name of the game at VSDA is mostly VHS...DVD is just getting started. (More on the economics of DVD production and release decisions in a DVD File article coming next week.)

So, just what is the VSDA all about?? Not having any prior exposure to it, and admittedly pretty much ignoring industry functions in general, I guess I thought there would be more...action. Not to bore you with personal details, but I've worked in various industries (music, graphic design, advertising) before coming and finishing film school here at USC in Los Angeles. General schmoozing and ass-kissing it normal in any industry, of course, but Hollywood excels at it. In a nutshell, the VSDA is more about show than actual substance. Big surprise, eh?

Having started this web site only recently, I've gone into this a bit wide-eyed and bushy-tailed. Not that I've become hardened and cynical, but with all the brouhaha and breathless anticpation leading up to the VSDA, you start to think that it is some grand four-day, non-stop announcement mill. In actuality, again not to sound cynical, but it is really just a big sales and promotion convention. Not, of course, that there is anything wrong with this. All industries need these type of functions to meet and greet others in the industry. Just keep in mind that, personally, after hearing all the news (or lack thereof) coming in from the show, I definately will greet the VSDA with a different set of expectations in the future. It ain't the Shangri-Lai of DVD announcements, that is for sure!

In the end, the VSDA is a big, fun, splashy event. If anything, I learned it is a great place for connections, to see what the studios are up to and get a general sense of where the industry is going. And it is great to meet people, and there are truly many nice, nice folks there. However, I also learned that it ain't official until it is official. One never knows what is up anyone's sleeves until you get that surprising mid-April Paramount announcement supporting DVD. Opinions are opinions, rumors are rumors, and facts are facts. End of story.

Okay, I'm sure I have now just ended my short-lived DVD web site-running career by writing this. Anyway, below you will find some general short studio impressions, as well as a daily breakdown of official press releases and news. Enjoy.

Studio Scorecard

Columbia

Expect more of the same from Columbia. Sony reinterated they are committed to quality, taking their time with the authoring, which has lead to many of the delays with their titles. Although no word came about Spielberg titles (yet), Columbia will continue to offer a varied lineup of titles every month. No hint at all from Columbia about any price drops or their classics and long-postponed titles appearing anytime soon. It is mainly a question of economics...slowly going through a back catalog and releasing more recent product first. Columbia has strong day&date support, and has added many extra features recently. Aside from the premium $29.99, Columbia does a great job. Expect more of the same, about 8 titles a month.

Disney

As we all know (and love, natch), Disney has probably the most ambivalent track record when it comes to DVD. On one hand, it is great to see them supporting DVD, but on the other, their choices in content remain questionable. No 16x9, day & date w/VHS, high prices, lackluster extras (even when plentiful ones exist) and lack of their animated titles being released does not rank them high on the popularity scale with DVDers. Unfortunately, their presence at the VSDA seems like more of the same. Although they are releasing their first animated title in October, it is the direct-to-video Beauty & The Beast sequel. A tentative first step. Disney reinterates that they are not lessening their DVD commitment, they are releasing no titles in September at all (don't get me started). They reinterate they are taking their time with the production end, but since their discs usually don't contain extras and aren't remastered from the laserdiscs, it is a tough nut to swallow. But, Disney is VERY conservative. A few of their recent discs had a few extras (Pretty Woman, Scream), so there is hope. It just may take a while and constant pestering to get them to change a bit. It is pretty clear they are very fearful of pirating, so day&date with VHS is a ways off for them, although they have hinted they may be testing the extras waters with better supplements on future releases, and "maybe" 16x9. Let's hope.

DIVX

Hahahahahahahaha!

DreamWorks

Not much of a presence at the show. However, they have more to worry about, amid rumors that they may be bought up and merged with another company, perhaps Universal. Of course, they don't have many movies out as it is, and most of the titles awaited (Deep Impact, Saving Private Ryan) are distributed by other studios. No news here. As for Spielberg or DTS, no news or gossip yet...

Fox

No announcement. Tip lips, as usual. To quote their pres Bill Mechanic "when you have 1,000,000 million units in homes, then you have a market." Although it is hard for many DVD and LD fans to realize, the average DVD sells only about 5,000 to 15,000 copies. It does nothing much for a studio's bottom line after costs. Fox has also said in the past they'd be the last ones in, and are not known for being much in the way of technology pioneers. If and when Fox announces, it will be a surprise. As for rumors and gossip about Fox not supporting DVD due to personal fueds between head honchos and such, whatever. Company decisions are not made on personal vendettas most of the time, it is about money, bottom line. Barring any surprise announcements, we just have to wait.

Paramount

Okay...when is Paramount going to release their titles? Their presence at the VSDA was VHS-only. The only hint came from a VP that "we won't be disappointed." After all the wait, they better deliver something better that Universal's first releases. Expect no announcement of Paramount titles at the show most likely, although Paramount did reinterate they are committed to day & date and DVD by the holidays. Let's just have faith...

Universal

Expect more of the same great work from Universal. Aside from not being able to release many of Spielberg's gems (barring some sort of announcement at the show), they continue to release plentiful and varied titles each month and have progressed farther in terms of quality and extras than any other studio. Expect their DVD commitment to continue to be unwaivering, although no new info about a rumored price drop seems to have come out of the show. We should see a nice set of holiday releases from them...I'm looking forward to it.

Warner

We love Warner. Let's face it, they made DVD, and continue to push the format forward. Although many have been concerned that the recent slowdown in catalog titles was a danger sign, in reality Warner is still shouldering a huge amount of the burden in launching DVD worldwide. Keep in mind they not only distribute MGM, HBO and New Line titles domestically, they also have to mastering and replicate DVD for the entire world, one region at a time. They do their own DVDs in-house (i.e., not farming them out to independent authoring houses a la Disney) and have a lot of work to do. Aside from the cool upcoming releases from Warners for the holidays (City Of Angels, Lethal Weapon 4, The Avengers, etc.), the big news is their new three-tier pricing structure ($24.99, $19.99 and $14.99 depending on title). A great idea. An official press release has not yet been made available to the major news sources. When it shows up online, I'll provide a link. See The Digital Bits for a abridged copy. Oh, by the way, I heard nothing either way about The Shawshank Redemption being cancelled...

Daily News Breakdown

Saturday, July 11th

Packing It In

Today is the last day of the convention, and nothing much usually happens. As I am not there, I did talk to a couple of friends still in Las Vegas, and nothing has happened in the way of announcements. I suppose something could come last minute, but don't hold your breath...

Friday, July 10th

Some Release News

DVD Review has a great overview of today's events, with some solid release news from some of the independents at the show. Expect some good offerings from Criterion, Fox Lorber, and a promised reissue of Anchor Bay's Halloween.

Warner Introduces Three-Tier DVD Pricing Structure

Warner has decided to go forward with a three-tier pricing system and published the release on Wednesday. However, an official press release has not yet been issued to the major news sources (Reuters, Business Wire). However, The Digital Bits has a copy of it up...I will post a link to the official press release when it comes in.

Thursday, July 9TH

More Positive Rental Support, Retailers Say No To Rental Pricing

More positive comments from the VSDA membership concerning DVD rental support, as well as reinforcing the sell-through DVD pricing structure. Story from Reuters via Infoseek.

NetFlix Names Top Ten DVD Rentals

NetFlix today announced the top ten DVD rentals since the online store launched on April 14. Top renters included As Good As It Gets, Fallen and Starship Troopers. See Infoseek for the full story.

Wednesday, July 8th

General First Day Impressions:

Overall, DVD made a solid presence at the show. Most studios had some DVD promotion at their booths, with Warner's being the largest, as one would expect. Neither Paramount nor Disney had any DVD news at all at their booths. However, a USA Today article on DVD rental and a prior press release from Disney both let slip that Titanic would dock at Thanksgiving, and Disney would be releasing some of its animated titles in the fall (in Europe). In the end, the day was surprisingly uneventful news-wise, with most exhibits being dominated by VHS, and the majority of the after-hours parties being primarily times to let loose and schmooze. However, a DVD panel discussion is up tomorrow at 11am, as well as a Fox Showcase at 1pm.

Warner DVD Revenue Reaches $110 Million

Warner has proudly announced it has generated $110 million in revenues from its DVD releases. Now, according to Warner President and vocal DVD champion Warren Lieberfarb, the next step is to challenge DIVX and launch DVD as a serious, lasting platform into the next millenium. Read the Reuters news story via Infoseek.

VSDA Announces Across-The-Board DVD Rental Support

Video software Dealers Association president Jeffrey Eves has officially stated that a "sea change in attitude" has taken place within the VSDA, and rental stores across the nation will begin to support DVD rentals in earnest, complete with software and hardware rentals. See USA Today for the full story.

Image Entertainment Strengthens Its DVD Line-Up With New Cult Favorites

Image Entertainment announces it has licensed many popular European cult favorites from Redemption for release on DVD. Titles include Cold Eyes of Fear, The Sinful Nuns of Saint Valentine, Devil's Nightmare and The Reincarnation of Isabel. Read the full story from PR Newswire.

Pre-Show Announcements

Disney and Warner Team Up For European DVD Rollout

As DVD begins to make inroads worldwide, Disney has somewhat surprisingly teamed up with Warner to release many of its biggest DVD product in Europe. Perhaps most interesting is the news that some of these titles will include some of their animated features, including Dumbo and Alice In Wonderland. Rumors abound that Disney is poised to make a big announcement at the VSDA about its September releases...could some animated features be among them? Click here for the Disney and Warner press release. (Thanks Infoseek)

Apple Launches G3 Powerbook DVD-ROM Support

Continuing their already strong support of DVD-ROM, Apple announces the inclusion of DVD-ROM capabilities in its popular line of G3 Powerbooks. Read the full story from PR Newswire

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