Dumping the DVD Dump Bins

[Grubert]

Source: Home Media Magazine editorial

Studio executives are still cringing over the so-called “Pali Report,” in which New York’s Pali Capitol Inc. projects a 5% drop in packaged-media sales in 2008, despite a tripling in Blu-ray Disc sales. But if you really study the report, you’ll find it’s not all doom and gloom ahead.

For starters, one of the key drivers behind the projected sales decline is the fact that Wal-Mart is getting rid of many of its DVD dump bins, huge vats in high-traffic aisles packed to the brim with DVDs selling for around $5 each.

Now, I’ve long held these dump bins are bad for the business, as they devalue DVD in the consumer’s mind. These dump bins are ubiquitous, stationed like big fat sentries around the entrance to the electronics department, home of more sensibly priced DVDs.

I, for one, am not sorry to see them go. And if you make the next logical jump — that Wal-Mart is dumping the dump bins to make room for bigger Blu-ray Disc displays, something that’s in the cards at most big retail chains — then it’s easy to paint the move in a rosy light. Getting rid of the dump bins may have a negative impact on overall DVD sales in the short term, simply because there are so many of them, in so many stores. But it certainly positions Wal-Mart to capitalize on Blu-ray’s likely upward trajectory by giving the chain a significant footprint in a category with dramatically higher margins than $5 DVDs — and a whole lot of growth potential. Sure, the number of cheapo DVDs sold this year may be off, dragging the whole category down. But that’s a hit our industry can easily take, if in fact Wal-Mart does allocate more space to Blu-ray.

And I happen to believe this question is a moot point. Of course Wal-Mart will allocate more space to Blu-ray, as will smart retailers everywhere. For years, these big chains have relied on DVD as their No. 1 traffic driver. They’ve discounted the newest hits to bring people into their stores — and once these people are inside, they rarely leave without a cartload of other purchases, from toilet paper to underwear.

With the DVD business maturing, the appeal of new DVDs isn’t what it used to be — and surely the powers that be at Wal-Mart and other big chains realize they need to reinvigorate the category, unless they want to risk hurting sales of other goods across the board. Now that the format war is over, Blu-ray is clearly DVD’s designated successor — and to retailers everywhere, nothing short of a potential savior.

[Blu Titan]

Good info. I am all for expanding the Blu-ray sections in Wal-Mart.

[Grubert]

Originally Posted by BlueNeon

Good info. I am all for expanding the Blu-ray sections in Wal-Mart.

My only fear is they might want to do with Blu-ray like they did with DVD, ie discount it heavily to bring people in the store.

[kccarl]

I'm a little confused by a couple of points. In past threads here, it was discussed that many true blu people are coming to the realization that they were buying blu ray movies simply because of the better resolution, and were not even caring if they liked the movie. Over time, as with all things, you get used to great resolution, and you look a little deeper. When many of us did that, we saw that not all movies are significantly helped by the blu ray treatment. Thus, paying 15 to 25, or more, dollars for blu ray as opposed to 5 dollars for a standard dvd started making some sense.

As an example, I just bought the Godfather, and an even better movie, The Godfather part II, each for 4.99. I didn't hesitate. What a total bargain.

So, if all the movies walmart keeps in these bins are crap, yeah, I'm with you, but thats not always true and bargains can be had. If they are removed, then, there will be no bargains. So, are these bins really a bad thing if used correctly?

The second point is why is discounting blu ray movies a bad thing? I have not purchased I, Robot for the simple reason they are charging 28 bucks for it. I made it a person goal of mine when I invested heavily into a dedicated blu ray home theater to both build a library of good movies and to never pay more than 20 bucks for a flick.

Isn't competition something we want? Drive the price down.

Kccarl

[kingofgrills]

Originally Posted by Grubert

My only fear is they might want to do with Blu-ray like they did with DVD, ie discount it heavily to bring people in the store.

I really hope Walmart does force the price of Blu-rays down. That will increase Blu-ray adoption rates and help propel Blu-ray to be the new standard over DVD. BD prices need to drop in order for more people to accept the format. I'm not talking about $5 Blu-rays here, because that won't be good for the movie industry. We need prices to hit where newly released DVD's hit, around $14-$24 or so depending on content.

If suggested retail prices for Blu-rays stay around $35, it won't hit maintstream and the only adopters will be the hard core videophiles.

[Ferris]

I agree that the bins LOOK trashy, and can lower the "WORTH" of the product. I also agree that having Wal-Mart (I NEVER shop there anymore, for personal reasons) price their films lower than other stores is a good thing to help kickstart the purchase of Blu-ray players and films.

But, something to be wary of is when Wal-Mart drops their prices too much, and starts putting these films in the "Sin Bins" too soon, the perception of Blu-ray as a technology will drop, and people expectations of getting better deals will rise. How many of us here ALREADY don't buy Blu-rays until they're stronlgy discounted or on BOGO? It's a general perception people get over time.

I know my rant is going in a few different directions, and for that, I apologize. Hopefully I got some semblance of a coherent point out there!

[sj001]

Not too mention, those bins usually have crap movies in them. But if it makes room for more BDs, great, just don't put them in bargain bins, it certainly is NOT the time to start putting a new technology at bargain prices yet. It's too early to devalue this stuff, much like HD-DVD was doing.

[jw]

years ago when the dump bins were 6.88 I spent alot of money snatching them up and getting alot of catalog titles at a reasonable price. My only issue with them is the damaged cases that transpired on the ones near the bottom from all the weight

[Bobby Henderson]

Although DVDs priced under $10 or even under $5 seem like a bargain, my time is still valuable.

I'm already spoiled by the superior video quality of Blu-ray. So if I'm going to buy another movie disc and spend 2 hours of time watching it, I'd rather invest in a Blu-ray version of the movie.

I'll also be much more likely to watch a Blu-ray version of a movie again. That's not so likely with a DVD. I'll still play certain movies in my own DVD collection a couple more times. But I'm honestly looking at selling or giving away a lot of them.

[Stephie_is_a_dork]

If they're getting rid of the $5 DVD bins in favor of more Blu-ray shelf space, cool beans. It's hard to for some consumers to justify $25 for a catalog title on Blu-ray when the same title is in the $5 DVD bin. Months ago, I almost considered buying A Knight's Tale and Reservoir Dogs from the bin, before I remembered they were already on Blu-ray.

[bkbluray]

I agree. It definitely devalues a DVD when I see a good one that's only $5. If Blu-rays were only $5, I don't think I would feel as much "value" when I watched one.

[camper]

Originally Posted by bkbluray

I agree. It definitely devalues a DVD when I see a good one that's only $5. If Blu-rays were only $5, I don't think I would feel as much "value" when I watched one.

If the quality was the same at $5 as it is at $25-$30, then I would feel MUCH more value. Blu Ray quality for $5???? That is an incredible value, so much more bang for your buck - the hallmark of value.

Anyway, BD prices must come down to be adoptable. Many people I know will take a chance buying a film for $5-10 but they're not willing to pay even $20 for a blu unless they REALLY like the movie. Especially if the SD version is half price.

~Camper

[Blu Holer]

Dump bins are great and I've always found great titles in them. This BD or nothing mentality just completely baffles me. Std DVD is still most adequate for many catalog titles. It's interesting that you say Walmart is doing away with Dump Bins, as the Walmarts in my town don't carry squat in the way of Blu and never have. Strangely enough too, Fry's has gone absolutely apesh*t with $5 dump bins all of a sudden and they are filled with great titles, most of which, I suspect aren't going to be on BD for a looooong time, if ever. To each their own though. For me, it will always be about the movies first.

[MatrixS2000]

Originally Posted by Grubert

My only fear is they might want to do with Blu-ray like they did with DVD, ie discount it heavily to bring people in the store.

I don't see a problem with that...if it drives more usage, I view it as a good thing.

[Barnum]

Originally Posted by Blu Holer

Dump bins are great and I've always found great titles in them. This BD or nothing mentality just completely baffles me. Std DVD is still most adequate for many catalog titles. It's interesting that you say Walmart is doing away with Dump Bins, as the Walmarts in my town don't carry squat in the way of Blu and never have. Strangely enough too, Fry's has gone absolutely apesh*t with $5 dump bins all of a sudden and they are filled with great titles, most of which, I suspect aren't going to be on BD for a looooong time, if ever. To each their own though. For me, it will always be about the movies first.

Have to agree with you here. I don't see how a dump bin in the aisle will make more space for bluray. WM supply of any movie media is crap. The sole reason to get rid of the dump bin is maximize profit. Put them back on a shelf and add to the price. If you don't think that is the plan then your a fool. The store will do what is best for them especially so with the slow economy. So many movies have a bad transfer so that will equal a poor bluray. You will not get aything better than the original master. Also, buying only blu is kind of stupid. There are still some movies that are not out on DVD so in saying that do you plan to wait a decade for a movie? Some of the very small obscure or small studios may take a very long time to release a lessor but good movie. Not trying to say blu is not worth it but the whole I will only buy blu at this point in the game is stupid. I think true movie fans will agree. It is after all about the movie.

[moviefan]

What are the stores/studios going to do with DVDs, and eventually Blu-ray discs, that don't sell after a reasonable length of time? $5.00 is better than destroying them, so dump bins are probably here to stay.
As far as Wally World is concerned, I don't see Blu-ray quality shoppers using that lowlife store as their primary movie source.
OK, start throwing the bricks!

[dk3dknight]

Originally Posted by moviefan

What are the stores/studios going to do with DVDs, and eventually Blu-ray discs, that don't sell after a reasonable length of time? $5.00 is better than destroying them, so dump bins are probably here to stay.
As far as Wally World is concerned, I don't see Blu-ray quality shoppers using that lowlife store as their primary movie source.
OK, start throwing the bricks!

They sell then to big lots and I buy them for $2.99, to $4.99

I get alot of pc games that way.