As the rumors have been discussed over the past few weeks, it is true that HIT is testing the market with a two-episode Fraggle DVD. The DVD will include episode 1 "Beginnings" and episode 3 "Let the Water Run".
More two-episode discs are likely or if the sales are good enough, a season box set is possible down the road. Find out the details and then vote in the above poll to let us know what you think about this release.
http://www.muppetcentral.com/news/2004/061804.shtml
Also, this story was released yesterday which will likely have a direct reflection on Fraggle sales, Wal-Mart is cutting shelf space for home entertainment products, specifically children's DVD's and videos. This counts for 42% of HIT's total sales. The below article estimates that Wal-Mart could return up to 3 million HIT video products.
HIT blow as Wal-Mart cuts space for products
By Tim Burt in London
Published: June 17 2004 22:25 | Last Updated: June 17 2004 22:25
Wal-Mart, the US mass market retailer, on Thursday told HIT Entertainment that it was cutting shelf space for home entertainment products - a mainstay of HIT's sales - sending shares in the UK animation group down 28.3 per cent.
HIT shares fell 83p to 210p after the animation group behind Bob the Builder and Barney the Dinosaur issued its first profits warning.
Wal-Mart's decision is also expected to affect other producers of children's videos including Walt Disney, Sony Pictures and Warner Brothers.
HIT said profits for the year ending July 31 would be 15 to 20 per cent below expectations following the move, which could see Wal-Mart return 3m unsold videos or six months' stock to the British company.
Industry analysts had previously forecast pre-tax profits of £40.7m ($74m) for the current financial year, compared with £39.7m last time.
HIT refused to confirm Wal-Mart was the retailer at the centre of the profits warning. But it admitted the issue would "have a negative impact on current trading and returns".
Rob Lawes, chief executive, said: "Despite this disappointing development, HIT remains a highly profitable company with one of the strongest portfolios of young children's properties and a strong home entertainment release schedule in the months ahead."
The setback follows a concerted drive by HIT to increase its presence in the US, which already accounts for 60 per cent of its total sales.
Earlier this month the company confirmed plans to take a stake in a new digital channel aimed at pre-school children. The company also secured global distribution rights recently for Henson Family Classics - part of the Jim Henson Company from which HIT was formed in the late 1980s.
The reduction in shelf space at Wal-Mart will affect HIT's home entertainment division, accounting for 42 per cent of total sales.
Officials warned there was little visibility on the impact for sales and profits in the next financial year.
The company is expected to set aside an unquantified provision for unsold home entertainment products.
Analysts said that, at worst, on Thursday's warning would wipe £8m off this year's profits. But uncertainty would continue during the next 12 months until Wal-Mart clarified its plans.
http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1087373088517
July Baby!!!! At Walmart!!!!
Linear Mode
