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Retailers Pressure Studios on Web Deals 202

mikesd81 writes "Over at the Associated Press, there's an article about retailers pressuring movie studios for the same deals that online servies are getting. Target has sent a letter warning 'that Target might have to reconsider the amount of shelf space allocated for movies if studios undercut the wholesale price of DVDs by giving online services a better deal on digital offerings.' At issue is the low price some studios charge for films downloaded through such fledgling services as MovieLink, CinemaNow and Amazon.com's recently launched video store. The two-disc rerelease of Disney's 'The Little Mermaid' now retails for $14.87 at Wal-Mart and $14.99 at Target. The movie can be bought for $12.99 on iTunes."
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Retailers Pressure Studios on Web Deals

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  • SOP (Score:5, Informative)

    by NineNine ( 235196 ) on Tuesday October 10, 2006 @10:31AM (#16377675)
    Standard Operating Practice. I own a retail store, and this happens every day. Manufacturers have to be very careful not to undercut their brick-and-mortar retailers, else they'll lose them. I did the same thing just last week. I found one of our manufacturers selling their products at my wholesale cost online. I told them that they need to fix that, or I'll dump the products. As is, I have customers coming in asking me why we're more than the website, and why they should bother shopping at my store if I'm going to rip them off. Manufacturers can never undercut their retailers (or let one retailer grossly undercut another), otherwise they risk losing them. And, without the retailers, they're dead in the water.
  • Uh, sorry... (Score:4, Informative)

    by Kantara ( 246758 ) on Tuesday October 10, 2006 @10:52AM (#16377919)
    But Target and Wal-Mart needs to RTFP. Apple's pricing is as follows:

    $9.99 - Library purchase
    $12.99 - Pre-release and new releases for the first week
    $14.99 - After one week as a new release and before it becomes a library purchase (Take a look at Annapolis - $14.99. It was $12.99 the first week Apple started to sell videos)

    So, Apple gets one week where they are $2 cheaper before Target matches and Wal-Mart undercuts their pricing. They are just complaining that they have new competition.
  • by Anonymous Coward on Tuesday October 10, 2006 @11:18AM (#16378263)
    You forgot the main one, the downloaded file does not create a disk that can be played on any DVD playback device. Unless these files can be used on regular consumer DVD players connected to TVs or portable players, they'll only be bought by a niche market.
  • Silly me, I thought that DVD's were DRM'd(encrypted). But a fallicous argument never stopped the US Consumer from listening.

    CSS is a kleenex. You can sneeze a hole in it.

    The actual problems with copying DVDs are the ways they deviate from the standard in order to make the DVD unrippable.

    Philips actually came down on some people for using the COMPACT DISC logo on CDs mastered some funky way to make them not be rippable (without using a data track, they were unreadable in data drives, but worked fine in audio) and told them they had to unfuck the CD or stop using the logo or get sued. Not sure how it all fell out though. But regardless, the DVD consortium, if it had any integrity which we know it doesn't, would be doing the same thing.

  • by r3m0t ( 626466 ) on Tuesday October 10, 2006 @12:35PM (#16379503)
    They stopped using the logo.

Logic is the chastity belt of the mind!