Re: Price Gouging-Carousel's perception on the issue

Michael Dash (carousel@pipeline.com)
Fri, 5 Apr 1996 14:26:41 -0500

I guess it's time for Carousel Film & Video to add our two cents into this
discussion. We are not one of the companies that has a two tiered pricing
policy, since we do not have a home video sales arm.
We have been servicing the film and video needs of the nontheatrical
market for over thirty five years and unfortunately this is not a growth
market. However, we do provide high quality independently produced videos
that would not otherwise be available through the less expensive retail
sources and really do not have a life in the home video marketplace.

We have found, on the occasions that we have made special low cost pricing
available, that it has not translated into increased sales for those
titles.

Since we do no production, we are responsible for royalties to the
producers and while everyone wants to pay less for videos they seem to
overlook the facts that every other cost for duplicating, preview and
review copies, packaging as well as advertising and promoting these videos
have risen drastically. This might not be as much of a problem if the
sales figures for the videos also was on the rise but with "pared to the
bone budgets" and libraries closing branches right and left as well as
Universities closing down their rental libraries, this is not the case.

One last thing regarding this issue is that the type of video that we and
other companies like ours distribute never sell in the hundreds of
thousands of copies that a "Pocahontas" or "Raiders of the Lost Ark" will
sell and, therefore, like any specialty item the price will be higher.

Let me know what you all think.

Michael Dash
Carousel Film & Video
carousel@pipeline.com