Paramount Cuts Wholesale Prices for Some Major Titles

Good news, bad news.

The good news for many video fans is that Paramount Home Video is lowering its price to distributors on several major titles--including “Star Trek IV: The Voyage Home,” “Indiana Jones and the Temple of Doom” and “Witness”--to $9.42.

A wholesale cost that low generally translates to a sales price of about $15, and even though--in an unusual move--the company isn’t also reducing the suggested retail tag on the cassettes, the cut will likely be passed on to consumers.

As a result, the 11 tapes--previously sold for $19.95 ($29.95 in the case of “Star Trek IV”)--will go for considerably less at many video stores.

The bad news? Tough luck if you recently bought one of the tapes at a higher price.

Paramount’s new prices have caused some confusion in the industry--with one noted video trade publication, Video Insider, reporting an actual reduction in retail price to $14.95. (Editor Steven Apple says he plans to print a “clarification” in the next issue.)

Paramount vice president and general manager Eric Doctorow believes that any confusion and controversy is “much ado about nothing.” He explained that his company simply wanted to give retailers and distributors something they’d asked for. They “told us there was no spring sell-through program on key videos” to spur business in the way several price-slashing campaigns did at Christmas. “We thought we’d give them a chance to create some (consumer) excitement . . . yet set whatever (profit) margin they want.”

Doctorow confirmed that even though Paramount didn’t officially lower the retail price, “you can expect a variety of (sales) price points: I suspect we’ll see some at $20.95, some at $16.95, and some at even less than $14.95.”

(In an unrelated new announcement, Paramount is officially reducing the retail price on all “Star Trek” TV episodes from $14.95 to $12.95. The final 18 episodes will be released at that price on May 11. The only exceptions to the new pricing are the series pilot, “The Cage,” and the two-part “The Menagerie,” which will remain at $29.95.)

What about the unhappy customer who already paid a higher price for one of the tapes? “That’s a tough question,” Doctorow admitted. “How does a manufacturer speak to the issue of discounts? After all, you can walk into Bullock’s and see a sweater that was $79 last week now selling for $49.”

Video consumers must be knowledgeable and realistic about repricing, he indicated, pointing out that in the past, other companies have suddenly trimmed an $80 title down to less than half of that for “sell-through” purposes, after the peak renting period.

Other films getting Paramount’s wholesale-cost reduction: “Pretty in Pink,” “Explorers,” “48 HRS.,” “Young Sherlock Holmes,” “Summer Rental,” “Clue” and “D.A.R.Y.L.”

All’s well that ends well--even HBO and Vestron’s war over a war film. At least it’s ended well for HBO: The home video company says “Platoon” has been rented more than 9 million times in its first month of release. Having won rights to distribute the videocassette of the acclaimed Vietnam-set hit, HBO estimates that the film will eventually garner approximately 35 million rentals.

“Platoon” is also one of 23 films HBO has just released on videodisc. Its new agreement with Laserdisc Corp. of America also means that disc devotees can get “Radio Days,” “Hoosiers,” “Making Mr. Right,” Volunteers,” “The Big Easy,” “No Way Out,” “Nothing in Common” and even “Beach Blanket Bingo” in their favorite format.