Video Multi-Packs May Solve a Big Problem

You know the problem: One of your favorite movies from last year is being released on videocassette this week, so you head for the video store only to hear this from the clerk: “Sorry, I’m all out of that one.”

Courage. Home video companies are trying to kill that problem--and one of their own--with one stone: the multi-pack.

With the January release of “Predator,” CBS/Fox pioneered this promotional scheme--one that could ease consumer frustration and put more money in the pockets of the video companies. Essentially, the plan offers retailers a discount for multiple purchases--from two to six copies each--of major movies.

With “Predator,” the Arnold Schwarzenegger action movie, the company gave retailers a discount for buying in two-packs. According to Jim Fifield, president of industry kingpin CBS/Fox, the plan resulted in a 60% increase in sales.

“You force the small store owner to buy at least two copies,” explained Fifield, whose company is also offering the James Bond movie “The Living Daylights” in bargain multi-packs. “The store that might only buy nine copies would buy 10. Those extra single copies add up.”

Other companies, including HBO, RCA/Columbia and Vestron, have joined the multi-pack parade. Vestron’s four-pack has a twist. Buy three copies of a hot title, “The Running Man” (another Schwarzenegger actioner, a May 11 release), and get one that’s less desirable--an obscure Patrick Swayze movie called “Steel Dawn.” But it remains to be seen whether even a discounted “Running Man” will enhance the appeal of “Steel Dawn” for retailers.

RCA/Columbia is promoting a four-pack of “Someone to Watch Over Me,” the thriller starring Tom Berenger that’s due out April 28. “With our plan, the fourth copy is returnable,” said RCA/Columbia president Rob Blattner, who expects to boost the movie’s sales by at least 25%. “We want to influence the retailer who would have bought two or three copies (of “Someone”) to buy four.”

And what if a dealer doesn’t want to buy a multi-pack? He may be out of luck getting certain films at the same time as competitors. With “Predator,” single copies weren’t available until 10 days after the release of the double-packs.

The multi-pack is one more way video companies are trying to slay a dragon they call “the depth-of-copy problem.” It surfaced in 1986, when many retailers overbought “Rambo: First Blood Part II,” anticipating a massive rental demand that never materialized. Thereafter, they bought more cautiously. Another factor: last year’s $10 rise in the basic retail price for many major titles--to $89.95--and the attendant rise in the wholesale cost.