Online sales unfair: retailers
p2pnet.net News:- US retailers are angry because, they say, Hollywood is giving the likes of MovieLink unfair price breaks.
But what’s patently absurd is the studios are trying to palm off digital downloads at prices not far removed from what they expect consumers to pay for DVDs, both products being loaded with Digital Restrictions Management (DRM) applications.
DRM is a daydream. Clearly, what can be seen or heard can be copied by various means, and DRM is easily defeated. But, say on- and offline music and movie lovers, why should consumer control mechanisms exist in the first place? Why should customers have the bother of having to find a way around them?
Meanwhile, the retailers want the Big Six studios to, “give them the same favorable deals being offered to Web-based download services such as Apple Computer,” says the Associated Press.
Target Corp has told the studios it, “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,” it said in a letter quoted by AP, which says similar concerns, “have been expressed by Wal-Mart Stores Inc. (WMT) and other retailers.”
In a statement, 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.
It shouldn’t hold its metaphorical breath, nowever, because sadly, the word ‘compete’ is in neither the corporate movie or music industries lexicons. They prefer the word ’sue’.
Meanwhile, “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 Unbox video store.”
Last month by Disney started selling digital downloads through iTunes for $13 but, “The two-disc rerelease of Disney’s ‘The Little Mermaid’ now retails for $14.87 at Wal-Mart and $14.99 at Target,” says AP.
However, “Online movie download services now account for less than 10 percent of movie sales, hardly a threat to retailers,” the story says, adding:
“But retailers fear a shift in the future, when downloaded movies can be viewed on TVs as well as computer screens.”
Also See:
Associated Press – Retailers Pressure Studios to Match iTunes Deal, October 10, 2006
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October 13th, 2006 at 2:33 am
Hmm, let’s see:
Digital file of a movie, with limited or no extras and locked with DRM so that it can barely be used and could disappear at any moment: $13
or
Physical product, including case, cover art, discs and extras, all playable in virually every video player available: $15
Gee, I don’t think Target has anything to worry about.