Discs beguile, but consumers not biting: that's the early word from Austin retailers.(The EZ-D Test)

Video Business
September 29, 2003


By JOE O'CONNELL

AUSTIN, TEXAS -- Metal helmets with wires snaking out of them encase the craniums of two men staring blankly into an audience. A huge tape titled "Video Rental" is shoved into an ancient machine. Horrors! But, wait, a mysterious man--a guru? a sumo wrestler?--produces a shiny box and opens it to reveal: EZ-D. The announcer intones the mantra: "No late fees. No returns."

Thus goes the TV spot airing nightly during evening news programs here in Austin, one of four cities in which Buena Vista Home Entertainment is participating in a test of Flexplay Technologies' limited-play EZ-D discs.

With the education process in its early stages, retailers visited in the second week of EZ-D's availability said consumers appeared interested in the disposable discs but not ready to buy.

A Buena Vista spokesman declined to discuss the test except to say that the studio is "compiling and closely analyzing store data" and that it has always expected the test to be lengthy and thorough.

Although deep discounts on standard DVDs are common at a wide range of retail outlets, most of the EZ-D merchants surveyed in Austin were initially pricing the disposable DVDs at the $6.99 suggested retail price, rather than discounting to get closer to the price of a movie rental. Meanwhile, in-store positioning and merchandising varied widely.

One Papa John's Pizza outlet in Austin had the most unique offer, selling a large two-topping pizza with breadsticks and one EZ-D for $17.99. The discs also were available individually for $5.99 with any order at the Papa John's store. The "pizza and a movie" offer was cheerfully promoted both on the recording heard by customers calling the store and by the staff member that came online.

At a 7-Eleven convenience store in middle-class North Austin, a petite clerk was busy stocking the candy aisle. A rack of EZ-Ds near the cash register needed no refilling; only one had sold in the first week.

"Most of them look at it, say 'that's cool' and put it back," she said of customers. "My personal opinion and that of a lot of customers is that it's twice as expensive as renting and it doesn't last long."

At a Walgreen's drug store near the University of Texas, signs on the door promoted "Non-drowsy allergy relief" and "The 48-hour, no need to return DVD." Inside, however, the small rack of EZ-Ds was hidden in a low-traffic area between bottled water and unopened cases of T-shirts.

"It's a convenience thing, but you're paying for the convenience," said a store clerk. "For that price, I'd rather go to Blockbuster, because it's on my way home."

A staff member at Suncoast in Barton Creek Mall said he sees promise in the EZ-Ds. The discs rested on top of a soda cooler near where the clerk, sporting black earrings and spiked hair, fielded DVD questions from knowledgeable customers.

"It's a pretty cool concept," he said. "They mostly want to find out how it works. They're in awe of it."

Few customers are buying, however, in part, he believes, because of the limited EZ-D selection. Along with such recognizable titles as Frida, Signs and The Hot Chick are lesser-known films including Heaven and Equilibrium. According to sources, however, Buena Vista will release several new titles in a few weeks.

The Suncoast clerk said he's hopeful heavy TV advertising will drive more people to actually buy the EZ-Ds. "If it were $3.99, it would sell like crazy," he said.