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Target's Ultimatum

Posted by: , 11:02 AEST, Tue October 10, 2006

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Target threatens to cut shelf space and promotion for DVD's unless it gets what it thinks is fair pricing from the studios
According to a Wall Street Journal report, Steinhafel's complaint is that "some movie studios have made new-release movies available to download service providers at lower cost" than DVDs, undercutting Target and other retail stores that pay higher wholesale costs. The letter then descends into downright playground bullying, saying that Target could "reconsider its investment in the DVD business.

When Target talks about leveling the field, it's looking past the cost of production and distribution of the different types of media. Physical DVDs may not cost much to press anymore, but they still have to be shipped to warehouses and stores. More...

Credit: ars technica


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