Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 05:37:09 GMT

[And now we return you to treating the actual content of the column as genuine discussion:]
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I think Target may soon learn to relax: Apple's Movie Store is helping to keep a lot of iPod's filled, but, if reviews are any indication, downloaded movies for any other reason just aren't playing in Peoria:
http://money.cnn.com/2006/09/18/technology/lewis_unbox.fortune/index.htm

And it's not -just- the technology, the interfaces or the price (okay, well, so a lot of it is the price)--It's the fact that most customers just can't see paying almost the exact same price for a soft file with no features as they can for buying the whole DVD package. On sale at Target.
And although Apple -does- plan to unveil the iTV (the "missing" wireless interface to play your desktop Front Row Quicktime movie controls on the TV), it's already arriving too late to convince users think downloading is the neato "future DVD replacement" that clueless studio execs believe it is--Right now, the question users have been asking for half a year now is "Why pay same for less?"

And the current lack of an industry answer to that question right now is posing no threat whatsoever to Target, Disney DVD, Lightning, Mater, Doc Hudson, or Mr. John Lasseter presently of Burbank, California.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 05:45:43 GMT

Oh, please Target. Stop crying and start working. Don't sabotage new technology, if you are disadvantaged by it. No, you (re-)invent new ways to keep the folks buying your stuff. So pathetic to sabotage Disney for this. It's still the *consumers* choise if they want to buy a physical copy of a movie (DVD) or a digital one (download).

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 06:11:27 GMT

It's a little known fact that the owners of Target are very ruthless, NASTY people who have very little regard for fair-practice business or any decent morals for that matter. This article is not off the mark is assuming they are "punishing" Disney.

And no, I don't work for Wal-Mart or any other big box in saying this.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 06:55:39 GMT

I think Target is overreacting just a bit here. Digital downloads may be the future, but the reason buying songs online became so popular was because it was a cheap and reasonable alternative to buying CD's. Where as movies...well, very few people want to pay just a few dollars shy of a DVD purchese to download a movie to watch on their tiny iPod screen. Just my thoughts.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 10:04:00 GMT

While I like the idea of iTunes downloads, I will not spend that kind of money if I cannot burn the movie to DVD to watch it when and where I want it without help of my laptop. I'll pay $5 more and get the case and media.

Sure, Apple is going to release iTV soon, but that still doesn't solve my problem. I can already hook up my laptop to my TV in under 15 seconds, I want whatever I want on DVD.

I can do it with iTunes songs, why not with movies?

Until then Target and the like will have my money.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 10:48:39 GMT

As someone who has and is working at a big box I think I will still get My movies at work. the reason--- It is my understanding when you download the movies from itunes you only get the movie. I like having all the extras that come with the DVD so I think I will get the whole thing from the store for a few bucks more.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 11:00:04 GMT

I seem to notice that maybe Target is not the only Retailer who might be having an issue. I had to look hard to find Cars at Walmart yesterday.

In addition, Costco used to be my #1 source of Disney DVDs. Now I don't see as many on the shelfs there, only the newest one and only for a few weeks????

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 11:21:55 GMT

I have to say that I fail to see Target's point, at least short-term. They are two totally different target audiences. I think that tech-savvy, particularly iPod-savvy (I mean, REALLY savvy) parents of young children are still a bit of a minority, and these are the people who shop at Target.

In addition, I have a two+ year old who loved Disney movies. No way in hell am I going to give her an iPod to hold.

I think long-term, they may have a point, but I think we are a ways off before the price/quality ratio on handheld devices will supplant DVD sales.

Oh, and doesnt Target now sell iPods? If they really think the movie download business is going to drain their DVD sales, why don't they start focusing on selling more iPods?

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 12:09:16 GMT

I have a hard time believing this considering I went to two Targets last week and both of them had a full shelf of Cars DVD's up at the front of the store. I've never seen any other movie get that same treatment and here is a Disney DVD getting a prominent display directly contradicting what Jim is saying. Hmm...

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 12:17:43 GMT

By removing the signage, the only one hurting Target's profit is........Target. Companies that don't embrace technology are bound to perish. The music industry, instead of embracing it, tried to fight technology like Napster. Now, they are at the whim of iTunes and essentially ruined themselves. I'm amazed how hard some companies are willing to fight something when it is just so much easier to embrace it.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 13:03:55 GMT

At my Target, not only did they have CARS but they had a bonus disk package with what will eventually be the second disk when they resolicit it in 6 months.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 13:40:47 GMT

Isn't Target kind of cutting of their nose to spite their face? I mean, removing signage isn't really going to hurt Disney. They're still selling their stuff, only Target isn't getting any portion of that sale.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 14:01:33 GMT

I wonder if there is more to this story than we know? I haven't heard Disney promoting their downloads. Has anyone else? Why would Target go to such GREAT lengths in a VERY public manner over downloads?!? There HAS to be something else.
In addition, how many people have bought a product because they saw a sign at the store? "I REALLY wanted to buy Cars on DVD, but since I saw a sign for Over the Hedge, I'm going to buy that instead!" I don't think so!
This affects Disney very little.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 16:09:40 GMT

All in all, I believe that this new wave of digital, downloadable content is still in an evolutionary phase. Until the technology develops a little farther, such as being able to quickly download high quality movies along with all of the same extras a dvd would bring, along with the ability to burn/copy/transport said media in a variety of matters, I think dvd's are a better deal. Of the percentage of people who own Ipods, how many are going to be thrilled about the idea of having to watch their $10 movie on only a two inch screen? I own a video Ipod myself, but have not purchased movies or tv shows despite my curiosity. Once I've watched it on my Ipod, what else is there? I can't do anything else with it. They've got it working for music, but video is still a developing technology. Compatability will also be an issue. Apple is not going to be successful in permanently reforming the way we receive digital content unless they are willing to share with other corporations. I recall Microsoft being underfire for compatiblity issues not too long ago. Ipods are not going to be the "new, hot item" forever.

Target has nothing to worry about. As much as apple or any other digital provider would like to boast, their technology is not quite up to par just yet to be making claims that they are starting to make dvd's obsolete. Big box stores like Target really need to grow up and get their act together. I don't know about anyone else, but whether or not I see a sign advertising a DVD is not going to change my mind about purchasing once I'm set on it.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 17:00:16 GMT

This is good to know. I went to Target yesterday - didn't really notice the signage since I knew what I needed before I went in. Couldn't get my cart down three aisles because of the garbage - not merchandise - garbage - old cardboard boxes, carts with inventory equipment, an actual plastic sack of garbage, etc. Didn't inspect the DVD area since WalMart and Costco always have better prices than Target for DVD's. Went past the three aisles of Halloween candy and merchandise still on display Nov 13th. No one was available for questions at the watch counter or electronics department, and waited in a long line for one of the two available check out clerks. Now I realize, no one was there to help or clean since they must have been changing out signs. Disney will probably not declare bankruptcy this week - the three things I bought didn't have special signs either.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 17:11:33 GMT

UGH... so why doesn't Target stop selling ipods? or computers? or CDs? It's RIDICULOUS! If I had read this before last tuesday, I CERTAINLY wouldn't have bought my copy of CARS there. Who needs to be taught a lesson... DISNEY? or TARGET? Disney will not lose any money... because people will STILL buy their merchandise. Target is just plain dumb. Lousy business practices= out of business.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 17:29:32 GMT

jedited said:
"I wonder if there is more to this story than we know? I haven't heard Disney promoting their downloads. Has anyone else? Why would Target go to such GREAT lengths in a VERY public manner over downloads?!? There HAS to be something else. "
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Especially when it isn't even "their" downloads--It's Apple's. And, again, it hasn't stopped Target from selling iPods.
Mostly analysts don't even seem to -know- why Only Disney has its movies up at iTunes, and haven't really seen any connection...Unless they really are naive enough to think Disney wanted to.

(The answer, if you looked at the article link, was because Steve Jobs had a studio in his pocket that he knew would play along from day one, so we could all use the service right away, and it would give investor confidence that someone would--
While all the other Fox and Universals were leaping to Amazon's clunky new service, who promised them that they could charge anything they wanted to for the downloads, and that they could all thumb their nose at Steve and his "communist" flat-prices...That doesn't sound like Disney collusion or persecution to me.)
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"In addition, how many people have bought a product because they saw a sign at the store? 'I REALLY wanted to buy Cars on DVD, but since I saw a sign for Over the Hedge, I'm going to buy that instead!' I don't think so! This affects Disney very little."
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IF it's reducing sales, it's reducing point-of-purchase impulse sales, which is only half--A parent nagged to pick up a copy of "Cars" will find it even if she has to go to two stores, or dig it out from a buried shelf. It's not exactly a low-profile title that needs the display exposure to sell itself.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 18:29:26 GMT

Oh, and:
Whether it's a can of peas or a DVD, a splashy store discount-sale display isn't there to say "We endorse this product"...It says "We've got too many!--Buy it and get it the heck out of our store, before we have to send back extras!...Here, we'll even make it cheaper for you, just take it!" :)

Which may be the real point about why Cars displays were taken down, and point-of-sales displays for October movies like "Open Season" and "X-Men 3" were put up, as they were nearing the end of their six-week major-sales window...
Maybe THEY were the ones that weren't selling as much as originally expected, and had to be cleared out fast before the (usually Disney-fueled) Christmas rush?

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 20:05:46 GMT

DerekJ: maybe, but there are several off these stories buzzing on the internet.. So I don't think it was just business as usual :P

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Tue, 14 Nov 2006 22:26:19 GMT

Out of curiousity, does Target carry gift cards for iTunes and other retailers?

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Wed, 15 Nov 2006 00:55:14 GMT

A physical DVD is so much better (picture quality, extras, etc) that I don't see digital downloads - which have been promoted for two decades as the "wave of the future" - as a threat to retailers.

There are better ways for Target to remind Disney that it needs established retail supply networks. One way is to arrange for exclusive deals (such as a second disc) that make buyers want to go to Target. I watch for these bonus extras, as they give great added value for what is already a relatively inexpensive disc.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Wed, 15 Nov 2006 05:44:22 GMT

Target does carry iTunes gift cards. They also sell quite a bit of iPods and iPod related products. Disney characters, even if all downloaded or netflix'd, will still move quite a bit of plush, decorations, clothes, and food items. You would think they would be a bit hesitant to piss off Disney, and shouldn't they be mad at Apple and not Disney? They wouldn't fault Disney if Wal-Mart started selling Cars at $10.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Wed, 15 Nov 2006 17:30:10 GMT

I bought my first two movies from iTunes last week - _The Mantis Parable_ and _The Moon and the Son_ - and I was disappointed by their performance. When I get a DVD, I can watch it in a friend's room with ease, but when I tried to do so with _The Moon and the Son_, I had to go through the rigamarole of authorizing the computer, and then it crashed at two points. In my opinion, iTunes video store is not yet as strong a medium as DVD.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Thu, 16 Nov 2006 04:07:51 GMT

As and employee of a video store I can tell you these downloads will put my place of business, out of business.

One, right now we do not have the bandwidth for speedy movie downloads, but it is only a matter of time. As a recent convert from dail-up to DSL, i see the difference and the pipes will only be getting bigger and bigger.

Two. It's not about the now but the next few years.
You have to rememeber that Blu-ray and HD-DVD is in the process of coming out.

These new"Super" DVD's are of very little benefit to the "average" DVD consumer. Only really the uber techofile will be interested in the upgraded tech right away. The only nice feature, is the fact that you can put a tv series season,on just one disc. (Even though they will never do this because DVD companies often use more than one DVD to stop people from burning DVDs)

This little side bar is to explain one thing, most people will not be upgrading thier DVD players to either a Blue -Ray or HD-DVD in the near future. The problem being that downloading will become more common and get better and better. The current Beta/VHS -Blu-ray/HD-DVD fight will not help the situation.

Target is not totally over-reacting. To steal a world from Walt, Target and Wal-mart often use DVDs as wennies, a way to get people in the store. Often times they lose money on the DVD transaction but figure that the low, low prices on DVDs get people through the doors. They might lose money on the DVD but they figure that you will spend money on other things that they make profit on.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Thu, 16 Nov 2006 12:37:53 GMT

Another issue is the only VHS product being shipped to retailers this holiday season is for dollar stores and a couple of Barney titles at Toys R Us, according to Daily Variety yesterday. So the shelf space for VHS has been phased out completely in favor of DVD and the HD rival formats. More units to be moved, etc.

Really, though, the future of retail is in discovery and speciality items, as well as special retail experiences. And that's not just a matter of downloadable media, but in product in general. Online shopping provides instant gratification without the time and gas money getting to the store. And I think downloads might even increase the amount of content available, because you won't need as many sales to justify the cost of packaging and burning, etc.

re: Is Disney's promotion of its iTunes downloads now making the Mouse's other merchandise a target for retaliation at Target?

Jim Hill — Wed, 29 Nov 2006 16:56:22 GMT

> users don't think downloading is the neato "future DVD replacement" that clueless studio execs believe it is--Right now, the question users have been asking for half a year now is "Why pay same for less?"

Well, not users who are downloading and watching TV shows on iTunes. That market has been booming.

As someone who uses a video iPod to play video content on a 52" inch TV, I can tell you: this is the future. Though it's only 5-10% of users now, those figures will continue to move up. Disney, no doubt spurred on by Jobs, has a massive presence on the iTunes Store and it is no doubt showing in their bottom line.

Apple will continue to dominate the market. Microsoft's Zune is a cruel, sick joke of a device.

Retailers should be afraid. They could, though, still get a piece of the pie from a solution like "MP Key" http://mpkey.com/ -- where a package is sold at retail, then (by using a keycode included in the package) the audio content is downloaded from the internet by the user. With so much content on iTunes, displaying it all to the end user will be the question.

All the best,

-joshMshep

Netcot » Podcast #029 - (Oldest Ride in WDW)

Jim Hill — Sun, 17 Dec 2006 21:10:43 GMT

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