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Retailers Pressure Studios on Web Deals

Dinny Re:Studios Win Again (202 comments)

The market works like this. The movie studios have a monopoly on the their individual movies. They abuse this monopoly to over charge retailers and consumers for DVDs. The studios open a new channel and use incentive pricing to help bring it to life. The very large and very powerful retailers see this as an opertunity to attack the monopolies that are making profits that the retailers could be making instead.

This is an effort by Walmart and Target to lower the price of DVDs even farther then they already have to increase the volume that they sell. This is two groups that are far to large and powerful to operate smoothly in a free market fighting for territory. It's a lot better for the consumer then for these two groups to get along.

more than 8 years ago

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