HOLLYWOOD -- Video customers have long been confused about the two-tiered pricing of VHS product, namely by the extreme difference between rental and sell-through prices, but DVD's single sell-through tier has eliminated much of that confusion in its regard -- at least until now. A current promotion (still on-line as of Oct. 16) by e-tailer Express.com here could have supermarket video customers scratching their heads once again.
Among the "high-speed entertainment" promoted by the Web merchant are four theatrical blockbusters coming soon to home video. With the purchase of a $24.99 coupon book offering savings of over $100 on merchandise, its site offers customers a choice of one free DVD -- via the book's first coupon -- from among the four titles: "Gladiator," "Mission: Impossible 2," "The Perfect Storm" and "X-Men."
What's confusing, however, is the retail pricing that's seemingly posted for the DVDs. Next to "MI2" cover art the site posts "Retail: $109.99" and beside the "Gladiator" art is "Retail: $109.98," both figures more akin to the titles' rental VHS pricing. Meanwhile "Storm" has "Retail: $104.98" by it and "X-Men" has "Retail: $109.98," both figures far above even the VHS pricepoints for these sell-through VHS releases. None of the four DVDs, of course, actually retails above $30.
"Essentially what you're doing is buying the coupon book at a special price of $24.99," said Express.com spokesperson Daniel Wool. "You're not buying the disc, you're buying the book with a free coupon for the disc. You can buy 'The Perfect Storm' on a separate page for $17.99." Wool also said the offer wasn't at all confusing or misleading.
A sizable portion of the supermarket video customer base can be expected to be exposed to this promotion, as Express.com is found in the Shop@AOL section of America Online, Dulles, Va., the nation's largest Internet access service. Express.com was chosen Online Retailer of the Year in 1999 by Video Business magazine.
