Target cautions studios on DVD downloading

Monday, October 9, 2006

Target cautions studios on DVD downloading

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Discount retailer Target has sent a letter to major movie studios urging them to recognize that movies offered through electronic downloading services could hurt Target's sales of DVD's

Target representative was not immediately available to comment to Reuters and had not commented to The Wall Street Journal.

Target's letter from President Gregg Steinhafel noted that movie studio downloads were less expensive than DVDs, according to the newspaper. The letter also said that if the pricing did not become more equitable, Target would reconsider its investment in the DVD business, the paper said.

Walt Disney Co.'s president of home entertainment has met with Target executives to stress that digital distribution is still a very small portion of the movie business, the Journal said, citing a person familiar with the conversation.