PSP PROMO HODGEPODGE
Few ads, varied displays
By Susanne Ault 6/24/2005
JUNE 24 | PlayStation Portable movie titles are flying fast and furious--some 300 will street by the year's end--but supporters wish the fledgling format was merchandised less haphazardly.
To best capture early adopters of the handheld media device, retailers have been slotting releases into game sections. PSP hardware sales--with more than 1.2 million units purchase in the U.S. since its April bow--similarly have targeted hardcore gamers.
But with PSP now aiming to crossover to mainstream consumers, studios are pushing for retailers to display titles in relatively roomier DVD areas. Studios also are pushing to nail down space once used for their VHS titles.
And retailers in turn are hoping studios ramp up advertising support of the PSP releases. Currently, DVDs are bigger priorities, and PSP-oriented TV and print promos are generally limited to titles released on both DVD and PSP simultaneously.
Meantime, even finding a PSP film within a game section can be tricky.
Hastings uses glass section enclosures, and some Target stores have begun segmenting PSP in their DVD sections. Best Buy is situating many PSP films in aisles between its game and DVD areas, and other outlets often keep films locked up in glass cabinets in its game areas.
Circuit City, Trans World and Virgin Entertainment Group keep PSP films and games together on racks in their game sections.
In a development considered helpful to PSP suppliers, Wal-Mart stores recently began slotting PSP films into an endcap at the edge of its DVD area.
"It's a real mixed bag of where [PSP titles] are being merchandised," Buena Vista senior VP sales and distribution Scott Guthrie said. "In the beginning, it was put it in the gaming area--PSP was being positioned as a gaming device. But people are feeling comfortable with it. Our second strategy for retailers is to migrate into the [film areas]. This would be a secondary position [while continuing a presence in games] or within film where it would exist all on its own."
Guthrie expects a placement shift across the board starting in September, so retailers can maximize fourth-quarter sales.
"It's a challenge," said Lions Gate Home Entertainment's brand manager catalog Eugene Kang. "Some stores are initially having their game buyers on it. But will likely transition to the movie buyer at some point."
Most store reps cite Buena Vista's Kill Bill and Sony's House of Flying Daggers and Hitch as current hot items. 20th Century Fox Home Entertainment's Napoleon Dynamite and Dodgeball: A True Underdog Story--both out July 5--are among the most anticipated.
"We're focusing on another demographic," Virgin movie buyer Chris Anstey said. "You might want to keep in mind what films kids are going to want to bring in their knapsack to share with friends. There's a cool factor to the films that do well on PSP. Cult and action seems to fit the genre the best."
Retailers with existing strong game business are thrilled at initial sales.
Previously concentrating PSP at its Sam Goody and Media Play locations, Musicland is now offering a full-fledged PSP film product line at Suncoast. Wholesaler WaxWorks/VideoWorks has snagged 10 new accounts of game-geared retailers wanting to sell PSP films.
But smaller, more movie-centric stores, including New England-based rentailer Tommy K's, are reporting difficulties turning their consumers onto PSP films. Indie sell-through chain Newbury Comics is not yet carrying PSP films out of uncertainty that its shoppers even want them.
Two specialty retail chains have sold a few thousand units each of PSP films, which starting streeting in bulk in late May and June.
Sony Pictures Home Entertainment, which released 14 PSP titles through mid-June, has shipped in excess of 1 million units collectively to retail. That figure excludes Spider-Man 2, which comes bundled inside PSP hardware packages. Its Top 4 titles, House of Flying Daggers, Resident Evil, Hellboy and Hitch have each shipped in excess of 100,000 copies and have each sold through between 60% and 80%.
Still, retailers are searching for more financial support in developing flashier in-store displays and in-store advertising. This co-op funding is prevalent for film and TV DVDs.
"If they really want to embrace the growth of the format, they certainly have to treat it accordingly with respect to in-store support," said one senior chain manager.
Although few such campaigns are solidified, studios appear willing to help.
Buena Vista's Guthrie is analyzing "buying different communication vehicles within retailer ads [including newspaper circulars]."
Sony has sent letters to retailers trumpeting PSP sales projections, and the studio "is open to programs with retailers" said president Ben Feingold.
It has been a slow build selling and renting PSP films for many of the 1,800 members of the Video Buyers Group. But stores expect a burst of national TV, radio and print ads from studios this fall.
"We're hearing that there will be pretty aggressive marketing campaigns during the fourth quarter," said VBG president Ted Engen.
Retailers have some plans of their own to capitalize on holiday gift giving. Tower is likely to roll out print ads a day after Christmas to hype PSP software sale.
