Erik Gruenwedel
No. 2 video rental chain Movie Gallery Oct. 6 said it is donating 20,000 used movie DVDs worth about $300,000 to U.S. troops stationed domestically and abroad.
Wilsonville, Ore.-based Gallery and subsidiary Hollywood Video, working with nonprofit Operation Homefront, donated three used DVD movies for every two $14.99 used DVDs purchased by customers as part of its “DVDs for the Troops” promotion from Aug. 10 to 30.
“We could not have made this difference without the enthusiasm of our loyal customers and the support from Operation Homefront, an organization that does tremendous work on behalf of the troops and their families,” said Cliff Torng, chief marketing officer with Movie Gallery.
Considered a cancer by the studios, used DVDs continue to gain market share as rentailers covet higher margins.
The rush to devalue new-release DVD movies (including Blu-ray) at the retail level has alarmed studios that see the lucrative packaged-media distribution channel now peddling commodity-based products with reduced appeal due to the influx of used product and $1-per-day rental kiosks.
Universal, Warner and Fox have all initiated new distribution policies with rentailers aimed at curbing or eliminating the influx of used product into the marketplace. Sony Pictures, Lionsgate and Paramount in recent deals with Redbox mandated the kiosk vendor could not repurpose their titles as used retail product.
Dallas-based Blockbuster continues to offer used product (four catalog or three newer titles for $20) while publicly distancing itself from the practice.
Indeed, Second Spin, the Trans World Entertainment-owned retailer of used DVD/Blu-ray movies and music CDs, has opened new stores in Ontario, Calif., and Phoenix.
It currently offers three used titles for the price of two.
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