PROVIDING FOR THE FAMILY

CHRISTINA VEIDERS Additional reporting: MICHAEL SLEZAK PAT NATSCHKE LENIUS

Supermarkets have a lot to choose from when it comes to children's programming.

There are the direct-to-sell-through theatrical mega hits that are almost guaranteed to bring customers into supermarkets and their video departments.

Studios also are carefully targeting the children's segment with new direct-to-video titles, a slew of children's catalog tapes, rereleases, budget titles and even children's video continuities and special programs designed just for supermarkets.

Jon Peisinger, president of ABC Video, Stamford, Conn., described the self-perpetuating nature of the children's segment, which some video analysts say could represent anywhere from 30% to nearly 50% of the 400-million- to 500-million-unit home video marketplace.

"The wonderful thing about the children's video market is that it keeps replenishing itself with customers every few years. Terrific titles find new opportunities in the supermarket venue through repromotion and repricing," he said.

In addition, the big push to sell children's titles is no longer just a fourth-quarter event. More suppliers are creating promotional events throughout the year to capture impulse sales. Said Dennis Maguire, vice president of domestic sales at Buena Vista Home Video, Burbank, Calif., "We think there is an appetite for family and children's product every single month."

For retailers, however, there is always the question of profitability and space.

Heated competition in the marketplace, especially among mass merchandisers, has too often forced price points on theatrical titles into the realm of loss leaders for retailers.

"That's why we think our direction has a lot of merit, selling a product by trade channel to ensure too much competition doesn't eliminate retailers' margins," said Frank Kilby, vice president of sales at Gateways to Space, Pleasanton, Calif. The "Gateways to Space" series will be marketed exclusively to supermarkets and drug stores through food brokers.

Suppliers of secondary titles said they hope major theatrical titles will bring people into the stores, and once there, they also will pick up less expensive catalog titles and other properties that retailers say make money for them.

"We may not sell 15 million units, but you have to address other things, such as being able to make a profit," said Debbie Ries, director of video sales at Lyons Group, Richardson, Texas.

"Nobody's fighting to discount our product. Since major releases are used as a traffic builder, they use budget videos to make full margins," said Jerry Pettes Jr., president of UAV, Charlotte, N.C.

As a channel of trade, supermarkets provide the perfect sanctuary to market children's products, said suppliers. Supermarkets have a high customer frequency rate and repeat visits. Their customer demographic is solidly family-oriented.

"As far as developing children's and family entertainment product lines, supermarkets are the perfect match," said Craig Van Gorp, vice president of sell-through at Turner Home Entertainment, Atlanta.

Besides carrying products with the right price point, retailers will be carefully looking at content, value and quality when choosing children's products.

Here is what suppliers of children's product said will be their hot sellers at supermarkets this first quarter and into the year.

Jon Peisinger president ABC Video Stamford, Conn.

One of our key promotions in 1995 will revolve around our very successful series, "Bill Cosby's Picture Pages." This is a series of fun learning projects primarily targeted at the preschool audience. It comes packaged with a workbook. They are intended to be interactive to the extent that the child viewer will be using the workbook to relate to what is seen on the screen.

We are anticipating going out with a major promotion this spring targeted at supermarkets. We think the quality of the programming, combined with the value-added aspect of the workbook, and certainly not least, the presence of Bill Cosby, says volumes to parents. We think we have the elements for a very successful promotion.

Glenn Greene president Bell Canyon Entertainment Bell Canyon, Calif.

Our biggest success will be a line of children's videos bearing the name "Someday I Wanna Be" for children ages 6 to 10. The first two products were "Someday I Wanna Be an Astronaut" and "Someday I Wanna Be a Cowboy."

These videos provide the supermarket shopper a good quality "edutainment" (educational programming as well as entertainment), not pure fluff. This is value-added information that basically explores the real work of those occupations.

The supermarket shopper is looking for something with entertainment value for the children, but something that also has nutritional value for the mind. We plan on coming out with a preschool version of the series that will include more music and original songs.

Joe Shults general manager BMG Video New York

We launched "X-Men" and "Power Rangers" and the next big thing will be "Skeleton Warriors," an action adventure video for boys ages 6 to 11, to be released in March. But the most successful video in supermarkets for us in 1995 would have to be the continuing mystery series featuring the Olson twins. The fourth and fifth titles have been released. The Olson twins video series has proven a sell-through success.

Dennis Maguire VP, domestic sales Buena Vista Home Video Burbank, Calif.

We're pleased to offer supermarkets the ability to sell our product month after month. In January alone we had a multimillion-dollar ad campaign promoting our Disappearing Classics.

We give people a reason to buy our goods month in and month out. For example, we've crafted a program around Valentine's Day (Disney's Valentine Video Shoppe) to give consumers another reason to buy these goods. There is a free Valentine Day greeting card on selected videos. We have come off a great Christmas "Winnie the Pooh," and we will now have it in our Valentine's day program. The Pooh bear will be a wonderful seller.

In this first quarter, "The Lion King" Sing Along Songs have been out. This month the direct-to-video action-hero, "Gargoyles, The Movie," will be released, appealing to boys. In March, we have the direct-to-sell-through title, "Angels in the Outfield," along with "The Lion King."

Fritz Friedman VP, worldwide publicity Columbia TriStar Home Video Culver City Calif

We'll continue to do very well with the National Geographic series of children's products, "Really Wild Animals" and "GeoKids." They'll continue to grow.

Steve Nurme national sales manager Discovery Communications Bethesda, Md.

"Professor Iris" is one of our product lines. We have nine out in the street now, and three more titles coming. We just launched the fun pack that includes a plush doll with a video. Playskool, a division of Hasbro, is launching a Professor Iris plush doll, too. We've also put out an adventure pack consisting of a children's nature line title with documentary-style footage, The package comes with binoculars at no extra cost.

Frank Kilby VP, sales Gateways to Space Pleasanton, Calif.

We'll be launching in 1995 "Star Scouts Discover NASA" (only sold to supermarkets and drug stores), with a backing of packaged goods companies. The videos are a 13-tape home series, and one will be released every six to eight weeks, with the first one released sometime during the second quarter. The suggested retail is around $14.99.

We think our direction has a lot of merit, selling a product by trade channel to ensure too much competition doesn't eliminate margin. This will be a continuing trend. So much product is released, (buyers) will have to cherry-pick, and studios will want to sell their secondary lines, perhaps to a particular channel.

Supermarkets can treat us no different than a shipper of lightbulbs. We're a 13-part series. Retailers can put it out there and make a fair profit.

Roy Winnick president Best Films & Video Beverly Hills, Calif.

Classic "Spider Man" will be released to coincide with a new series on the Fox television network this month. "Benji" will continue to be big success for us. There is possibility of new Benji movie and television series this year.

Mindy Mervis director KidVision, division of A-Vision New York

Our "Magic School Bus" video series should be really successful in supermarkets this year because it is popular with both children and parents. The series has won the Parents' Choice gold award. It is a science-based fantasy show targeted to children ages 4 and up. It is PBS's first animated show.

We are working with Scholastic on this series. In addition to the television show itself on PBS, a national advertising campaign started last month. Print and television ads will be scheduled for the first and second quarter of 1995. Merchandising pieces available include a 12-piece display built like a school bus with characters in the windows and a header card, and a 4-color fixture that holds 24 pieces.

The product will be distributed in clamshell packaging to underscore its classic nature and collectibility. The first two videos in the series, "The Magic School Bus Gets Lost in Space" and "The Magic School Bus for Lunch" (about the digestive system) has already hit the stores. There will be 26 titles in the series and they will be released at the rate of two or three titles per quarter. Inside the video package consumers will find free collectors' postcards that tie in with the program.

The titles in the series will retail for $12.95, like the Power Rangers series. Our children's video price points have always been in the $9.95 to $12.95 range, competitive with other children's video products.

Denise Young executive VP Citation Cos. Birmingham, Ala.

In the spring we'll be testing a Precious Moments licensed property continuity promotion. We're offering five angel puppets in the Timmy the Angel and Friends puppet collection for $9.95 each. In addition, there will be two $9.95 video titles, "Simon the Lamb" and "Who's Who at the Zoo," a sound story book and music cassette, all from Western Publishing.

The property itself is so impressive. It's a property that has such high retail integrity. It is a high-end gift store item. Retail sales are $500 million annually. There is a Precious Moments Collectors' Club with 650,000 members who pay $32 annually. I think the property has deeper reach than most people imagine.

If the test goes well, we'll roll it out in the fall with two additional titles: "Timmy's Gift" and "Timmy's Special Delivery."

We'll continue promoting the first children's property that started us in business nearly three years ago, the "Shari Lewis, Lamb Chop and Friends" collection with video priced at $8.99. In that period we've placed the program in 4,000 supermarkets. The total program has generated over $9 million in sales.

Last year we added "Tiny Toon Adventures," with two video titles from Warner Home Video: "Tiny Toon's Island Adventures," "Tiny Toon's Big Adventures." Those two titles, priced at $12.95, are the only ones we've had at a price point over $9.99.

Louis Feola president MCA/Universal Home Video Universal City, Calif.

The most exciting properties we have are the direct-to-video sequels to "The Land Before Time" and "The Adventures of Timmy the Tooth." In addition, there is the continuation of "Shelley Duvall's Bedtime Stories" and "Mrs. Piggle Wiggle." Later this year, we'll rerelease to home video the animated version of "Beethoven."

Alan Perper senior VP, marketing Paramount Home Video Los Angeles

Our biggest success this year will not be one individual title, but a series of titles. For us, it's about our on going catalog, about price point and promotion in terms of how we look at "Peanuts," "Charlotte's Web" and other titles. And on the rental side we're excited about "Lassie" and "Andre." We're also excited about our association with Moonbeam Entertainment and our series of products called "Josh Kirby, Time Warrior."

Jerry Pettes Jr. president UAV Charlotte, N.C.

"Young Pocahontas" will be a brand-new musical title for us in 1995. The title will be in a clamshell and packaged with a doll. Also the rerelease of "Puff the Magic Dragon and "Puff and the Incredible Mr. Nobody" will street this month at a suggested list price of $9.99.

Our strength is our ability to manufacturer in-house, and ship direct to retail. That allows us to put product into supermarkets at an aggressive price point from $1.99 to $9.99. We can be very competitive with all kind of programs.

Greg Johnson president Quality Video Minneapolis

We're releasing "Lions: Kings of the Serengeti," narrated by Melanie Griffith, which we hope will tag along with the release of "The Lion King."

There's increased awareness of animal products, not just "The Lion King."

Wendy Moss senior VP, marketing Sony/Wonder New York

One of the most successful series we have had in supermarkets and other channels is the "Enchanted Tales" series. These are from Sony/Wonder. We will continue with this series with 11 titles overall. The next title to be released will be "Peter Rabbit." We will do a tie-in with Little L'Eggs. We expect a lot of support at the supermarket level with that and our video.

There will be additional titles, such as "The Prince and the Pauper," "Noah's Ark" and "Pocahontas." These will continue through 1996.

Lola Valenciano sales manager Random House Children's Media New York

I'm high on "Richard Scarry" and "Sesame Street." Scarry has been gaining tremendous momentum on all fronts and recently the character got licensed on Showtime. And of course, Sesame is always tried and true.

Tim Fournier VP, sales, sell-through and multimedia LIVE Home Video Van Nuys, Calif.

In 1995 we will continue to be successful with our seasonal programs. FHE is the leader in children's Christmas programming with "Frosty" and "Rudolph the Red-Nosed Reindeer." We also have a fine Easter line that we'll continue to promote. We've added to both these lines. In the Easter line, there's another volume from the Beatrix Potter collection.

Michael Gottsegen chief executive officer 3-G Home Video Canoga Park, Calif.

We are seeing a phenomenal interest in the Pog craze, the milkcap mania craze. We have produced and promoted two videos, "Milkcap Mania Volume I: Playing Caps and Slammers" and "Milkcap Mania Volume II: Collecting Caps and Slammers." Each retails for $5.99. Milkcaps are a craze on the West Coast and are now getting hot in the Midwest and East Coast.

We're running a special promotion with the titles. Six limited-edition milkcaps are included inside each video, and one in every 250 videos contains a certificate for a limited-edition, 24-karat gold-plated slammer.

Sandy Weisenauer VP, marketing Video Treasures Troy, Mich.

We'll concentrate more on classic cartoons, three to six hours in length. They do extremely well in sell-through. We also have 13 titles from children's classic books, including "Peter Pan," "Cinderella" and "Thumbelina," coming out in clamshell packaging. Feature-length titles, 50, 60 or 90 minutes, will be priced at $9.99. We think they will have life in the supermarket. We have special prepack displays. These products offer an opportunity for continuity programs.

Don Gold VP, sell-through programming Vidmark Entertainment Santa Monica, Calif.

"The Adventures of Blinky Bill," an animated series based on an Australian koala bear, will be our first franchise to be released through our Kidmark division.

There are upwards of 40 episodes that are currently running on syndicated television in about 90% of the market. Four titles to be released this year are "Blinky and the Magician," "Blinky Bill's Fire Brigade," "Blinky Bill's Zoo" and "Blinky Bill's Fund Run." Two episodes will street in March and be sold together for $12.99. We think this price point offers real value for two quality programs. The other two titles will be marketed for back-to-school in August.

We are offering 45 minutes of programming supported by a six-month marketing campaign. There will be about 25 licensed products tied to the charters.

Blinky's themes are universal, and teach children how to protect the environment and not destroy the earth. The programming is educational and its themes don't consist of bullets and karate chops.

Debbie Ries director of video sales Lyons Group Richardson, Texas

In April we are coming out with a Barney video on safety. It will be both a compilation of some clips from our PBS episodes and a considerable amount of new footage. It will be about safety at home, at the playground, in the car. We think it will be very big because it is of such concern to parents. We think through the power of Barney it will be a very big title. There will be a $1-off coupon in the package. Of the top 100 sell-through video titles in 1994, 12 were Barney videos, according to VideoScan figures. We only have 14 Barney titles. There is not a huge advertising and marketing campaign behind them, but children love Barney.

Craig Van Gorp VP, sell-through sales Turner Home Entertainment Atlanta

We'll release "Swan Princess" later this year. It produced $10 million at the box office. Although that isn't a blockbuster number, there have been titles like this that do very well when they go to sell-through.

We're coming out with a new Easter promotion this month: "Yogi The Easter Bear." We're running incentives with the promotion, including a chance to win a dolphin cruise for four, free coloring sheets on the pack and a free Yogi music audio cassette offer.

We're also repromoting some titles from our "Timeless Tales" (Hallmark) series, such as "The Ugly Duckling," "Emperor's New Clothes," "Puss and Boots" and "Elves and the Shoemaker." Timeless Tales from Hallmark are $9.98, and the 55-minute Yogi Easter title is $12.98.