Quote:
| She informed me that the penalty to the store is $1000.00 for each day sold prior to official release, per unit sold. |
This is a myth within the industry that will never die. Sometimes the employees actually
believe this, since it is a "threat" their managers use to keep them from putting titles out early. It's also reiterated to customers who may be asking to purchase a title early. There has never been a penalty imposed for a streetdate violation -- certainly not against the likes of Wal-mart. No studio would
ever punish Wal-mart--they wouldn't have the balls to even give them a
warning.
As a means for fair competition, the studios and distributors simply
ask that retailers do not sell the product before streetdate. Some distributors may ask their dealers to sign an agreement, verifying they understand the rules. Any "penalty" that has ever been threatened has been either:
(1) The withholding of any co-op advertising credit that may be owed the offending retailer -or-
(2) The delayed shipment of an upcoming-title, so the offending retailer will not be able to sell it on its streetdate, thereby losing sales.
Again, these have been just threats. There has never been a reported case of a retailer actually being penalized. There have, of course, been literally thousands of reported streetdate violations reported to the industry's 800 tip line. The studios set up the 800# as "lip service" to the retailers concerned, while the offenders continue to offend with no penalty ever levied.
On the rare occasion a studio or distributor actually contacts the offending retailer when a tip is called in, it's usually explained away as a "stock-person error" -- "Sorry, he's a new employee and didn't know better". Right. As if a new employee opens a box (clearly labeled "WARNING: STREETDATE SENSITIVE PRODUCT--DO NOT SELL BEFORE ______!!!") and places the title on display without management's instruction.
There is no
law broken when a retailer sells a title early; just a breach of a trade "agreement". Retailers have been
knowingly violating this agreement for years. Every unit of a title they sell early is a sale their competitor doesn't get. The offending retailers count on these additional sales. The fact that so many people read about "early" releases, then go to these stores to purchase them, proves the point.
If not, would the purchase of these titles have been made at
another store, on streetdate? It's too bad that honest stores, playing by the rules, are rewarded with lost sales.
On the other hand, it's understandable that a hardcore fan would want his
VTTBOTS as soon as he could get his grubby paws on it!