Blu-Ray of Anchorman only available at Best Buy.

Topic started by Rorie on Aug. 31, 2010. Last post by JokerSmilez 2 years, 8 months ago.
Post by Rorie (3,216 posts) See mini bio
I hate stuff like this. So if I want that new fancy Anchorman blu-ray with all the extra stuff and the deleted scenes, then I have to trek over to Best Buy instead of being able to just order it from Amazon. I wonder why studios agree to this kind of consumer-unfriendly stuff...
Post by FrozenPeas (417 posts) See mini bio
They must get a hell of a kick-back otherwise I don't get it, surely they would want their product in as many channels to market as possible. As someone who almost exclusively buys dvd's/blu-rays on Amazon this would stop me from buying it (I can't anyway because I'm in the UK and we don't have Best Buy's!).
Post by JokerSmilez (437 posts) See mini bio
My guess is because it's an old movie so they make more money with the kickback from Best Buy for a few months of exclusivity then they would by just selling it everywhere.  
 
I'm sure they have plenty of accountants crunching numbers for them telling them the best way to maximize their profits. I doubt anyone is going to refuse to buy this movie later on or boycott DreamWorks because of this, so in the end it doesn't hurt them either. 
 
Capitalism at it's finest!
Post by FrozenPeas (417 posts) See mini bio
@JokerSmilez:  Its this kind of behaviour that makes me really want the digital revolution come sooner rather than later, out of date business practices that hurt consumers who want to consume your product by making them jump through arbitrary hoops. 
Post by JokerSmilez (437 posts) See mini bio
@FrozenPeas: Honestly, the digital era is only going to make it worse. Instead of Best Buy exclusivity, it'll be Apple's iTunes store exclusivity. And they'll add the problems of prices that never have to come down because they don't have to clear out physical stock and since you're not actually purchasing content, you're purchasing the right the view the content, they can alter it, change it, or revoke it if they really want to. These tactics aren't really out of date either. They're relatively new because with all the pirating of movies, companies need to do more of this stuff to make their money.
  
On Tested, they recently talked about how digital movies are much better than Blu-Ray because Blu-Ray has all those ads at the beginning. Well, if Blu-Ray is ever completely replaced by digital, does anyone really think they won't start putting ads at the front of those too? Ones you can't even fast forward? 
 
They will do whatever makes them the most money. If making a deal with Best Buy makes them more money, they'll do it. They only care about their customers insofar as it provides a profit. If they can make more profit but screwing people over, they'll do that instead.
Post by Gort (96 posts) See mini bio
Staff
I took a marketing class last quarter. Based on my half-understanding of what went on in the class and my quick re-reading of the textbook, I think that timed-exclusivity to a retailer is a horrible, horrible idea.
(I am getting my information from Chapter 13 of A Framework for Marketing Management, 4th ed. by Philip Kotler and Kevin Lane Keller. Just if anyone has the book for some reason).
 
The marketing book states that "exclusive distribution" of a product severely limits the number of intermediaries allowing a manufacturer (in this case the studio) to maintain control over their product through "mutual services and responsibilities" agreements.
The book further emphasizes the importance of shelf space (essentially the only thing one retailer can offer over another). You want more shelf space to crowd out other products and brands to attract non-loyal (in this case non-fan) buyers. 
A retailer looking for a better partnership with a studio can offer a higher margin earned per unit, defined sales volume and turnover, and cooperative advertising.
 
In the case of the Anchorman Blu-Ray, Best Buy probably offered an advertising campaign, high sales rate, and more shelf space until next year. In return, they are the sole distributor of a product with a demographic of fans that buys consumer electronics.
Brand loyal consumers (the fans) want the Blu-ray now. A high enough percentage will probably go to Best Buy to buy it if it is the only option.
 
The marketing book also says that such exclusive deals almost always fail, and the retailer is left sitting on a pile of the product that they cannot move.
This situation is good for the consumer (i.e., you) because Best Buy will have to heavily discount the Blu-Ray at some point in the near future.
 
I got a B+ in the class. A lot of the stuff in marketing made little sense to me or seemed unethical. What do I know anyway?  

I want the Anchorman Blu-Ray with all its special features, but do not own a car. For me, getting to a Best Buy involves taking public transportation and walking a while (MUNI here in San Francisco).
That's one $30 sale Best Buy won't get... for now at least.
Post by Rorie (3,216 posts) See mini bio
@Gort: Informative post, thanks!
Post by JokerSmilez (437 posts) See mini bio
@Gort: Intriguing stuff. It seems like the DVD and Blu-Ray biz has been struggling to find the best way to make money selling their stuff for a while. We've seen exclusive editions in the past as well, and I don't think it's a coincidence that this is with a re-release of a catalog movie. 
 
Also, I doubt Best Buy really cares about sitting on a pile of extra stock as it fits their business model of "loss leading" products or selling things like DVDs for a loss in the hopes you'll also buy something else. I had a friend who used to be a manager at a Best Buy and he was telling me that they often make little to no profit on things like TVs as well and they make most of their profit in that department on cables. So, the smart people do their research online, take advantage of the sales and get the TV they want for cheap, and then buy all the cables etc. from monoprice.
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