LOS ANGELES -- The complexity of copy-depth programs is resulting in increased costs to distributors, according to a study released by the National Association of Video Distributors during its meeting here last month. The NAVD called on the studios to simplify the programs.
The association, which is based in Owensboro, Ky., also noted that there is a rising occurrence of late shipments to distributor facilities and this is disrupting the marketplace. The NAVD's Operations Committee reported that on 75% of releases at least one shipping facility of each distributor received product late.
As a result of its study of copy-depth programs, the NAVD submitted a number of recommendations. Among them were that studios standardize and simplify programs, reduce the complexity for retailer qualification, announce programs on time and with complete details, compensate distributors for incremental costs, standardize allocations for free-goods programs, and standardize the product-return window for buy-back and lease programs.
The study found a 76% increase in administration time, a 47% increase in calls to customers to close orders, a 57% increase in the length of each customer call and an 18% increase in phone costs. Free-goods programs cost distributors an additional $500,000 and buy-back/lease programs cost an additional $140,000.