Wal Mart and Target are not happy

[Fairweather Pure]

http://www.filmstalker.co.uk/archives/2 ... udios.html

DVD retailers Target and Wal-Mart are concerned that legal movie downloads are eroding their sales, and Target have written to studios and warned them that they will "reconsider the amount of shelf space allocated for movies" if they continue to see the prices of Internet downloads fall below their wholesale prices.

The news comes from a studio exec who talked to the Associated Press and wished to remain anonymous, the story comes through Corporate Media News. Target have since declined to provide the press with a copy of the letter.

In a prepared statement Monday, Target called for "equity between the alternative means of delivering movies to consumers...Target does not object to competition, but we do expect a level playing field upon which to compete with the online services," the company said.
The really do mean business, however right now the facts stand against them. According to the story downloads account for less than 10% of current movie sales. Add to that the fact that most downloading services don't offer the extras that are on most DVD's nowadays, and that on iTunes only Disney are offering their movies. It's quite a restricted market. However analysts expect it to pick up and for this to become a real concern to retailers in the future.

What this could mark is the start of a levelling of the playing field. Either DVD shelf prices will lower and become more in line with downloadable films, the download prices will increase to match DVD shelf prices, or nothing will happen in the prices and we'll see a shift to a complete Internet sales model. I could see the first happening, but not the other two. Is this something to make you start thinking about, or will the studios ignore the retailer's threat?

It's an interesting time for all forms of media. The Internet is changing all the rules or simply throwing them out the window entirely. I'm watching all of the old ways try thier hardest to hold back the new ways and as it all unfolds all I can think of is how these types of people and businesses are only delaying the inevitable. Still, thier stall tactics and threats are a treat to watch.

[Winnow]

This threat may have some meaning in the short term but long term, the Walmarts and Targets of the world need to figure out some new revenue streams as all media will be going online eventually...it's just a matter of storage space, bandwidth and marketing new net connected home theater products...granted, the transition will take several years.

[Sartori]

Fuck Wal-Mart, and I don't care for shopping at Target much. Hurt revenue streams? I'm not up on Target's financials at all. However, Wal-Mart makes more than some countries do annually (I know - common knowledge), and I wouldn't be surprised if their bullying tactics are accountable for at least part of that. Won't catch me shopping there unless it's a last resort.

[sarlen]

Its interesting to see the stance the big guys are taking on this issue, if they dont belly up to the bar and start an online service of their own they will be left in the dust. I work for a media company myself and I can tell you us and everyone like us are working on plans to offer our movie and music catalog to the world in a digital format with fewer restrictions then the bigger guys are offering now. Although the majority of our media is book sales look for new and interesting ways to "read" a digital book.

[vn_Tanc]

what are they gonna do? "If you we can't sell as many copies of your movies we're going to . . .stop selling your movies!!!!111"

Fuck 'em in their stupid greedy arseholes.

[Bubba Grizz]

Considering that Target rarely if ever has a sale on anything I wouldn't be surprised if no one bought shit from them. Wal-mart however usually has low prices. I tend to buy my stuff from Best Buy.