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RCA Press Release for August 30, 1982

DALLAS, August 30 -- Aggressive and creative video dealers will be the victors in the bitter trench war now under way for the consumer's dollar, an RCA spokesman said today.

While industries ranging from automotive to zinc are struggling with declining volume, sales of video products such as video discs, video cassette recorders, color television sets and home video cameras are running ahead of last year despite the recession, according to Thomas G. Kuhn, Division Vice President, RCA VideoDiscs.

"One reason that video products have been able to counter the economic trend is the strong selling job being done at the retail level by video dealers," Mr. Kuhn said.

Noting that the Electronic Industries Association (EIA) has estimated video disc player sales at between 250,000 and 350,000 units this year, and video disc sales at between 5 million and 7.5 million albums, Mr. Kuhn said, "We are in the forefront of a new $200 million a year business that promises to grow substantially in the years ahead."

Although the video disc still has a few skeptics, "I can tell you that the video disc in its first year outsold black-and-white television, color television and video cassette recorders combined in their initial years in the American marketplace. And that outstanding sales performance is testimony to the strength and resiliency of our distributor/dealer organization," Mr. Kuhn added.

Mr. Kuhn said, "The real profits from the video disc are going to those dealers who stock a variety of titles and prominently display them at the retail level. Our surveys indicate that in the vast majority of cases, consumers go back to the same store for additional video disc albums because that store has a good selection of titles. It seems axiomatic that dealers who carry discs sell discs."

He said RCA has put strong emphasis on dealer-oriented promotions designed to bring customers into dealer stores. This fall, for example, RCA will be running three major promotions in addition to its national television and magazine advertising.

The first promotion, which starts September 14, features the five James Bond movies now available under the RCA VideoDiscs label. Mr. Kuhn said, "The James Bond films constitute the most successful series of motion pictures ever produced, and we believe that James Bond's legion of fans will welcome the opportunity to collect these spy thrillers for their home video libraries." Any customer that buys three James Bond discs will get a $10 rebate from RCA as an incentive to make multiple purchases.

In October, RCA will run a Halloween horror film promotion highlighting nine discs. With the purchase of any three horror discs, the consumer will get a $10 rebate plus a $5 coupon that may be used toward the purchase of any other RCA video disc.

In November, the company will run a promotion featuring 13 comedy discs. Once again, the consumer who buys any three of these discs will get a $10 rebate and a $5 coupon that can be applied to future disc purchases.

In addition, Mr. Kuhn said RCA has prepared a very exciting stereo demonstration disc to help dealers promote the new stereo video disc players and has provided dealers with point-of-purchase material to support its promotions and disc sales.

"We have approached the marketplace with the dealer's interests and needs very much in mind, because we are fully aware that the success of the video disc depends on strong dealer commitment and support," Mr. Kuhn said.