Comment The End of an Era (Score 2, Interesting) 624
Coming from the duplication/distribution industry, believe me, VHS is on its way out the door.
The demand has decreased significantly, this was the yellow light for studios, who will now proceed with their "end-game".
Several of the larger studios already have plans laid out to end production of all new VHS within the next year or so (in North America at least). A majority of the smaller studios I've dealt with have already made this switch.
When production stops a studio generally "expires" the title shortly thereafter. This means a small quantity is kept on stock via the vendor and the resulting majority of retail returns are destroyed after a return credit is issued to the retailer.
The strategy is to expire the slowest moving titles in waves leading up to the "A" and "B"(fastest selling/most profitable) movers within a given period of time.
Soon after distribution channels dry, any remaining retail channels will be hard pressed to keep stock on hand and many will return their remaining product to the vendor before it expires and they can get credit for the return. Despite any residual consumer demand the masses have spoken and sunk this titanic.
To drive the point home, the business side of things are drying up now too. Our VHS duplication business (as well as rumors of others)will be winding down shortly and will be channeled to an outside source who will manage the remaining duplication business for North America.
To make a long story short, the profit is not there to continue this legacy.
Read my sandwich board...the end is near!!!
The demand has decreased significantly, this was the yellow light for studios, who will now proceed with their "end-game".
Several of the larger studios already have plans laid out to end production of all new VHS within the next year or so (in North America at least). A majority of the smaller studios I've dealt with have already made this switch.
When production stops a studio generally "expires" the title shortly thereafter. This means a small quantity is kept on stock via the vendor and the resulting majority of retail returns are destroyed after a return credit is issued to the retailer.
The strategy is to expire the slowest moving titles in waves leading up to the "A" and "B"(fastest selling/most profitable) movers within a given period of time.
Soon after distribution channels dry, any remaining retail channels will be hard pressed to keep stock on hand and many will return their remaining product to the vendor before it expires and they can get credit for the return. Despite any residual consumer demand the masses have spoken and sunk this titanic.
To drive the point home, the business side of things are drying up now too. Our VHS duplication business (as well as rumors of others)will be winding down shortly and will be channeled to an outside source who will manage the remaining duplication business for North America.
To make a long story short, the profit is not there to continue this legacy.
Read my sandwich board...the end is near!!!
