making money on laggards- vhs

Influx Insights — 2008-12-22T11:56:39Z

There's a great story in the LA Times about a company which bucked the trends. When everyone was moving to DVD, they brought VHS tapes and still found buyers.

"The last major Hollywood movie to be released on VHS was "A History of Violence" in 2006. By that point major retailers such as Best Buy and Wal-Mart were already well on their way to evicting all the VHS tapes from their shelves so the valuable real estate could go to the sleeker and smaller DVDs and, in more recent seasons, the latest upstart, Blu-ray discs. Kugler ended up buying back as much VHS inventory as he could from retailers, distributors and studios; he then sold more than 4 million VHS videotapes over the last two years.

Those tapes went to bargain-basement chains such as Dollar Tree, Dollar General and Family Dollar, and Kugler's network of mom-and-pop clients and regional outlets, such as the Gabriel Bros. Stores in West Virginia or the Five Below chain in Pennsylvania."

Proof is ever we needed it, that trends take some time to die and that it takes a long time for technology to fully saturate.

While we all crave the new, remember there are many that can't access it.

Posted by Ed Cotton

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making money on laggards- vhs