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SCMP Reporter

PROFITEERING by ''greedy film studios'' has led to a price ploy where the customer is the loser and has prompted warnings from the Consumer Council about paying double for one movie.

  Video distributors have paid as much as $4 million to secure the rights to sell top Chinese movies to video clubs, claimed the managing director of video giant KPS Video Express, Mr Garrie Roman.

  But the sky-high prices are being passed on to the consumer in a new marketing ploy which has prompted protests from the Consumer Council.

  The council's deputy chief executive Mr Li Kai-ming warned yesterday that some distributors were ripping off the video renters.

  Full-length feature films were being split into two tapes and touted as a two-part movie. In some cases, the prescribed length of the movie was printed on the packaging, but the distributors failed to warn the video renter the actual tape was beefed up by commercials at the beginning and end of the tapes.

  To see the film in full, the renter was being forced to return to the store and take out the second part.

  ''Some of the distributors list the real running time, but some do not. They should let the consumer know,'' Mr Li said.

  Renters of new Chinese movie video releases are effectively being forced to pay twice to see one movie because distributors are packaging one film on two video cassettes, allowing the retailer to pass on the 100 per cent price increase.

  The set price per video copy paid by video outlets to the distributor is $500, but because of the big money being paid for the rights, distributors are charging the outlets double, Mr Roman said.

  The practice has become widespread over the past six months and movies hit by the price ploy include KPS' number one rental choice this week, Justice My Foot, which stars Anita Mui Yim-fong and the viewing public's second favourite, Dragon Inn, starring Tony Leung Ka-fai.

  One genuine two-part movie was actually sold on three tapes so distributors and video outlets could recoup the high price paid for the rights of the film master.

  There are 10 movies stocked by KPS which are affected by the distributors' high price. KPS decided not to pass on the extra costs to its members, but smaller outlets face renting at a loss if they do not charge customers twice to see one movie.

  Only Chinese films are affected because local film producers do not use the worldwide practice of accepting a guaranteed percentage of gross receipts. Instead distributors have been forced into a bidding war.

  ''The source of the problem is created by the movie makers . . . the prices being charged by the film company's are getting bigger,'' said Mr Roman.

  ''They don't want their fair share of the rental market, they want as much as they can get,'' said Mr Roman, who said the film companies can secure between 60 and 70 per cent of the rental market share.

  ''I hope someone like the Consumer Council will call the film studios which are charging too much money. The film studios are so greedy,'' said Mr Roman.

  The Consumer Council is pushing for the inclusion of videos in the Trade Descriptions Ordinance, Mr Li said.

  Without legislative backing, the council was powerless to stop the practice, he said.



Video fans lose out in price ploy