NEW YORK -- Digital videodiscs are coming to supermarkets, but retailers are well-advised to approach the new format cautiously in the next year, said Bill Sondheim, president of PolyGram Video here.
ting kiosk programs, like the one offered by PolyGram. However, "in the next year, DVD is going to be a little bit tricky because you are going to need to judge the demographics of your store, and judge when to actually enter into the DVD market," said Sondheim.
He estimates it will take most of next year for DVD sales to build up to the point where it will be a viable product for most supermarkets. But retailers shouldn't wait too long, he said.
"In my opinion, it would be foolish to take an attitude of, 'I'll get into DVD when it is really big.' The chances are that, by then, the consumer will have already created new relationships with other retailers. If it were up to me, I would not allow that dynamic," he said.
"The key question is not if DVD will happen, but when it will happen and how retailers can get involved at this early stage in a proper way without getting hurt. They need to keep their expectations at a reasonable level," he said. Sondheim declined to comment on the new Divx format for limited-use, disposable DVDs.
PolyGram provides a kiosk program that offers retailers a turnkey approach to the DVD market with a demonstration player, hardware and software to rent and the fixture on which to merchandise it. Others, like Ingram Entertainment, La Vergne, Tenn., are introducing similar programs.
Supermarket interest in the PolyGram kiosk was strong when it was introduced at the Video Software Dealers Association show last summer and is continuing, said Sondheim. "We are getting as many inquiries today as we got at VSDA from supermarkets. They are anxious to learn how it is doing, how many we have sold, how the units are renting, and other details."
