Fighting lost battle
I can understand Target’s position when arguing that it is unfair to them when Hollywood start to sell movies on-line, chipper than the discount retail. Moreover, If I was Target I would start to plan for better use of my shelf space than DVD’s and CD’s; It is only a matter of time, and not long now, that nobody will agree to pay for DVD when they can save the cost storage, distribution and shelf space by using computer files and high bandwidth.
Link: Target, a Big DVD Seller, Warns Studios Over Download Pricing
Target, which accounts for about 15% of the big studios’ DVD sales in the U.S., said in the letter that it didn’t object to competition but wanted "a level playing field." It went on to say that if it didn’t receive what it considers to be equitable pricing from the studios it would reconsider its investment in the DVD business, suggesting the retailer might cut back on shelf space, promotional programs, signage and other aspects of marketing discs.
The sharply worded letter from Target President Gregg Steinhafel said that the chain had become aware that "some movie studios have made new-release movies available to download service providers at lower cost" than DVDs, allowing the downloaded movies to be sold to the public at lower prices.
Technorati Tags: Target - The long tail - shelves space
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