Target wants cheaper DVDs

Filed under: — By Aviran Mordo @ 9:48 am

The proven success of digital music downloads seems to have served notice to the nation’s largest retailers that the online entertainment age is coming, whether they want it or not. The latest sign is a letter from Target president Gregg Steinhafel to the major movie studios, urging them to “level the playing field.”

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,” cutting shelf space and promotion unless it gets what it thinks is fair pricing from the studios.

Source: arstechnica


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