Columbus KMA Rental Rate Up
e Columbus marketing area of Kroger Co., Cincinnati, has raised its rental rates, SN found while visiting stores. New releases were repriced from $1.99 to $2.49 late last year.
But prices on catalog titles were much lower than the last time SN surveyed the market, down to 50 cents a night from 99 cents. An executive at the KMA would not comment.
The Kroger stores posted two specials that brought the rental rates down for consumers. There was a Monday special that priced new releases at 99 cents a night. The chain also offered a 10 rental value pack for $14.95, advertised for $9.95 the week stores were visited.
Three Star Time Video sections in Columbus, Ohio-area Big Bear Stores had new releases priced at $2.49. Most video specialty stores in the area, such as Blockbuster Video and Hollywood Video, were higher.
Two Chains Set Merger Date
ST. PAUL, Minn. -- Two large video specialty chains have set March 2 as the date for their merger, which was announced last summer. Video Update here and Moovies, Greenville, S.C., will hold stockholder meetings that day to approve the proposed merger of the two companies.
Moovies operates 267 corporately owned stores with another 39 franchised operations. Video Update has about 385 corporate and franchised stores.
Games Score 51% Sales Hike
PORT WASHINGTON, N.Y. -- Sales of video game hardware and software rose 51% from 1996 to 1997 to reach a record $5.5 billion, reported the NPD Group here. The sales were attributed primarily to the Sony PlayStation and Nintendo 64 formats, with the Sega Saturn platform a distant third.
More than 10 million of the new game systems were sold in 1997, the survey noted. This is good news for supermarkets that rent games as part of their video departments, industry observers said.
"Sales for video game products, especially software, should be strong in 1998 as customers look to satisfy their desire for exciting game play," said Ed Roth, president of NPD's tracking services. "Although growth rates experienced in 1997 are not likely to be sustained in 1998, the industry could possibly exceed $6 billion in total U.S. retail sales." The current year is likely to be the peak year for sales of this generation of video games, he added.
Columbia House, Warner Team
NEW YORK -- Columbia House Co., a unit of Sony Music Entertainment here, and Warner Music Group, have launched a web site dedicated to the sales of all entertainment software products, including video. Total E (www.totalE.com) will offer music, videos, CD-ROMs, books and audio books. Consumers do not need to be members to use the service.
Paramount Sets 'Fairy Tale'
HOLLYWOOD -- Paramount Home Video here will release "Fairy Tale -- A True Story" to the rental market March 31 with an order date of March 16. The PG-rated movie grossed $14 million at the box office, and stars Peter O'Toole and Harvey Keitel. The title will be supported with a 50-day pay-per-view window and five-unit prepacks that include 50 "Fairy" window clings.
Top 10 Supermarket Video Rental Titles
Title (Weeks Out) Studio Retail Last Week
1The Game (1) PolyGram $106.99 New
2Soul Food (2) Fox 19.98 5
3Men In Black (8) Columbia 23.95 1
4Conspiracy Theory (4) Warner 107.11 3
5Con Air (6) Buena Vista 107.11 2
6My Best Friend's Wedding (5) Columbia 22.95 4
7Leave It to Beaver (1) Universal 19.98 New
8Contact (5) Warner 107.11 7
9Buddy (2) Columbia 22.95 10
10Picture Perfect (2) Fox 103.91 8
This chart, tailored for the supermarket video market, is based on information taken from more than 1,000 supermarket rental locations serviced by Ingram Entertainment, La Vergne, Tenn.
