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EDITORIAL

Retailers Get Tekken
Remember some weeks ago when everyone was all abuzz with TEKKEN and how it sold so many thousands and thousands of copies? Didn't it seem just a little too good to be true?
  Well, it was.
  Large retail chains like Barnes & Noble and Blockbuster ordered a lot of those copies. Once hesitant to carry anime, they seemed to be very interested in this product, especially with the video game tie-in. It seemed a perfect fit. It was marketed well (to the retailers, at least). ADV had an aggressive campaign and it paid off, at least at first.
  Unfortunately, though, many of those record number video tapes are being returned. The reason? Simple. They didn't move. People weren't buying; maybe they weren't even renting. As a result, the retail stores started losing money, and that doesn't make them happy.
  When a large retail chain agrees to pick up a video, it expects a certain rate of sell-through. This means that they expect a certain percent of the number they buy to sell. If they don't, then the buyer has the option to return the unsold product to the distributor. When this happens, everyone winds up losing money, so large chains tend to be certain about their chances of selling when they order titles. This is one of the reasons it has taken so long for anime to make it onto mainstream retail shelves. Why use up valuable shelf space with a video that will only sell a handful of copies when you could fill the whole row with TITANIC and MULAN?
  Now that TEKKEN has come and gone, what impact, if any, can we expect there to be in the marketplace? Well, first of all, industry insiders note that large chain stores (one in particular) have become very wary of anime again. With the poor performance of TEKKEN fresh in their minds, they will be very wary of anime when placing future orders. Distributors are reportedly already feeling the pinch as retailers decide that right now anime isn't worth the risk.
  For fans, what this means is that new titles may be harder to find. Since retailers don't want to order any more stock until they sell out of existing inventory, anime seekers may have to turn increasingly to specialized stores or online retails outlets. While not necessarily a bad thing, this does limit the general public's exposure to anime.
  And it makes anime's uphill climb to mainstream status an even steeper one. Companies will have to scramble to find new ways to get their products into mainstream stores, which was already no easy task. Of course, in a few months—or even weeks—this could all blow over. After all, it was only two short months ago when VIDEO BUSINESS featured an in-depth feature on anime. But the market is nothing if not fickle, so only time will tell.
  In the meantime, however, just make sure to keep your eyes open for the titles you're looking for, as chances are high they may not be showing up on local store shelves as frequently as they would have been before.

  Ex animo,

  Charles McCarter
  Publisher/Editor in Chief


THE EX MEN

PUBLISHER / EDITOR IN CHIEF
Charles McCarter

ASSISTANT PUBLISHER / DESIGN EDITOR
Keith Rhee

PRODUCTION MANAGER
Chris Kohler

ORGANIZATIONAL CONSULTANT
Chad Kime

COPY EDITORS
Peter Cahill
Charles McCarter
Michael Poirier

STAFF WRITERS
Peter Cahill
Eri Izawa
Mark Johnson
Roderick Lee
Eric "Scanner" Luce
Charles McCarter
Maria M. Rider
Keith Rhee
Rika Takahashi
Ivevei Upatkoon

PRODUCTION STAFF
Geir Friestad
Chris Kohler
Tom Larsen
Eugene Moon
Keith Rhee
Rika Takahashi
Tom Tjarks

CONTRIBUTING WRITERS
Darold Higa
David Ho
Chad Kime
Eddie Kwon
Kenneth Lee
John Yung

SPJA SITE ADMINISTRATOR
Eric "Scanner" Luce

SPECIAL THANKS TO
Objective Consulting Inc.

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