Home Media Magazine - January 26 - February 1, 2009 - (Page 32) NEWS Circuit City Discount Deals Might Be Elusive promotional and margin pressure for Minneapolis-based Best Buy. up prices for liquidation. “In the long run, this is a marketConsidered the grim reaper of retail, Great American’s president share game,” Widlitz said. “And Andy Gumaer said his company simply not having Circuit City attempts to balance a well-known around will allow Best Buy to gain deceased business’ public farewell share.” while at the same time trying to recoup the millions it paid for the «SOME PEOPLE GET ANGRY assets. WITH THE LIQUIDATOR. … HAD “Some people get angry with the ALL THOSE CUSTOMERS BEEN liquidator,” Gumaer said. “And the IN THERE BEFORE OUR SALE, truth is that we weren’t the ones [CIRCUIT CITY] WOULDN’T BE managing that company. We were IN THE POSITION THEY’RE IN.» invited to bid, and the creditors ANDY GUMAER, knew we were bidding solely for PRESIDENT, GREAT AMERICAN, the purpose of liquidation. Had all WHICH IS LIQUIDATING THE CHAIN those customers been in there beIndeed, a Deutsche Bank anafore our sale, [Circuit City] wouldn’t lyst upgraded Best Buy’s shares to be in the position they’re in.” With partners, Great American “buy” from “hold” following Circuit helped liquidate $1.8 billion in in- City’s liquidation. “Although [Best Buy] will continue ventory for bankrupt Montgomery Ward, sold more than $2 billion to feel pressure from Wal-Mart in in inventory for Kmart, and liqui- the consumer electronics space, we dated Tower Records and Video believe the company will be an aboveaverage share gainer from [Circuit in 2006. “There’s no question that in the City’s] closures,” analyst Mike Baker last 10 years, any high-profile bank- said in a research note. Widlitz, in a visit to a local Circuit ruptcy … we’ve been involved with,” City store, said the most in-demand Gumaer said. Finding a deal at Circuit City items, including HDTVs, video stores might require patience, but games and Blu-ray players, were the apparently not if you are in the least discounted. “We found that on average, overmarket for a corporate jet. The retailer sold a 1996 Hawker lapping SKUs were actually 4.2% 800XP for $4.75 million to Tacala more expensive at Circuit City than Inc., a Birmingham, Ala.-based op- at Best Buy,” Widlitz said. Best Buy COO Brian Dunn, in a erator of 130 Taco Bell restaurants, recent financial call, said the comfollowing an auction Jan. 14. Stacey Widlitz, analyst with Pali pany had an opportunity to capitalCapital in New York, believes Cir- ize on rival Circuit City’s cease of cuit City’s liquidation is a mixed operations by specifically targeting blessing for Best Buy. She said the its customer base. “This is entirely about customer chain’s liquidation over the next three to six months would provide acquisition for us as we go through Continued from page 1 www.homemediamagazine.com service and/or unique product offerings. “In a lean economy, price tends to matter more than premium service/ product, which is not in Best Buy’s favor,” Arnold said. He said the chain’s halting of expansion to conserve cash might allow it to survive the recession without closing stores. “A prolonged recession, however, may even see Best Buy close some stores to match decreased consumer demand,” Arnold said. Edward Woo, analyst with Wedbush Morgan Securities in Los Angeles, said any consumer electronics retailer, big or small, would benefit from Circuit City’s demise. “Anybody that sells consumer electronics should benefit from one less big competitor,” Woo said. “You’ll see continued struggles from smaller players [going out of business], and Best Buy enduring to compete aggressively with the mass merchants, most of whom also will be around a while.” this difficult time,” said Dunn, who will be taking over as CEO in June (see story page 10). Dunn declined to comment on conversations with key vendors regarding Circuit City. He said Best Buy would focus on offerings from the cheapest TV possible (“for Aunt Louise”) to the most complex networked home theater solution. Analyst Widlitz, however, said Wal-Mart would likely benefit the most from the demise of Circuit City, due to third-party research that found 72% of Circuit City shoppers also frequent Wal-Mart, compared to 55% who patronize Best Buy. She said discounters such as WalMart, Target and Costco have been gaining consumer electronics market share at a much more rapid pace than Best Buy, including introducing more name-brand televisions over the past year. “While Best Buy domestic comps were down 6.5% in December, nearly all the major discounters … called out CE products as being a bright spot for the holiday,” Widlitz said. Other analysts countered that WalMart attracts a different audience than Best Buy, but any reduction of stores would help both chains. “You have more and more companies either going out of business, as in the case of Circuit City, or concluding that there’s no sign of an upturn any time soon,” Nigel Gault, chief U.S. economist at IHS Global Insight, told the Los Angeles Times. Tom Arnold, professor of finance at the University of Richmond and longtime Circuit City observer, said Wal-Mart, e-commerce and other discounters aren’t burdened with Best Buy’s vaunted level of customer Making ‘History’ TV historian Simon Schama (left) joined BBC Video and The British Embassy Jan. 14 for a preview and Q&A for his new documentary series “The American Future — A History.” The series is available as a two-disc set for $34.98 from BBC Video. The event was hosted by British Ambassador Sir Nigel Sheinwald (center) and attended by Thomas Friedman, foreign affairs columnist for The New York Times, as well as some of Washington, D.C.’s media pundits. L A T E FL A SH ES I BLOCKBUSTER HIRES DIGITAL EXECUTIVE Blockbuster Inc. has created an SVP position in charge of electronic media, naming former Philips executive Kevin Lewis to the position. He will oversee Blockbuster’s forays into direct-to-home connected devices, set-top boxes, portable video players, DVD vending machines and digital kiosks. The 37-year-old Lewis was chief officer of strategy and new business development for Philips Consumer Lifestyle, a division of Amsterdam-based Royal Philips Electronics. Lewis will be responsible for creating user-friendly consumer applications for Blockbuster, including interactive TV, 3-D video, digital audio, and health and wellness products. Sony Pictures would decline $145 million from a previous forecast last October. Sony Pictures includes Sony Pictures Home Entertainment. The revision comes as Sony Corp. said it would likely generate a loss of $1.6 billion — its first annual net loss in 14 years. The media conglomerate, which last month said it would eliminate 8,000 positions this year, reported a $4.1 billion profit during the previous year. Separately, Sony maintained previous projections to sell 2.2 million standalone Blu-ray players and 10 million PlayStation 3 game consoles in fiscal 2008. Operating income for Sony’s games division, however, is expected to decline more than $336 million due in part to $168 million in lower-than-expected sales of PS3, PSP and PS2 video games. Sony said it would reduce its global workforce 30% by 2010. — Erik Gruenwedel DTV Switch Could Catch Millions by Surprise Continued from page 1 could track progress to digital readiness.” Legislation introduced in Congress, if passed, would delay the analog broadcast shut-off to June, approve more funding for a $40 coupon program for digital converter boxes and extend expiration dates for coupons already in the hands of consumers (see story, page 12). President Barack Obama supports a delay, while House Republicans have come out against the idea. Nielsen’s 6.5 million figure rep- resents 5.7% of all United States homes. However the Nielsen data shows a disproportionate number of black (9.9%) and Hispanic (9.7%) homes are unprepared for the transition. The biggest metro area with the most unprepared homes is Los Angeles (7.6%), Nielsen reported. “It is imperative that we operate at an accelerated pace to educate those who are at the greatest risk of losing their television service: low-income households, large numbers of senior, minority and disabled viewers,” said Cynthia Perkins-Roberts, Nielsen African American Advisory Council. “These viewers rely on traditional television the most and can least afford to lose their television lifelines. We have a responsibility to make sure that these groups … are equipped and ready for this transition.” Consumer groups and some technology companies have offered support for a nationwide delay, while the Consumer Electronics Association and the Federal Communications Commission have been vocal against it. I SONY INCOME DROPS Sony Corp. reported fiscal-year 2008 (ending March 31) operating income for HOME MEDIA MAGAZINE (ISSN 1934-9882) is published weekly 52 times per year by Questex Media Group, Inc., 306 West Michigan Street, Suite 200, Duluth, MN 55802. Subscription rates: $49.99 for one year in the United States and Possessions; $79.99 for one year in Canada and Mexico; all other countries $99.99 for one year (by surface mail). Add $75 annually for air-expedited service. Single copies (prepaid only): $6.99 in the United States, $8.99 in Canada and Mexico, $13.99 all other countries. Back issues, if available: $9.99 in the U.S.; $15.99 in Canada and Mexico; $26.99 for all other countries. Include $6.50 per order plus $2 per additional copy for U.S. postage and handling. Periodicals postage paid at Duluth MN 55806 and additional mailing offices. POSTMASTER: Please send address changes to HOME MEDIA MAGAZINE, P.O. Box 1270, Skokie, IL 60076-8270. Canadian G.S.T. number: 840033278RT0001, Publications Mail Agreement Number 40017597. Printed in the U.S.A. Copyright, 2009 Questex Media Group, Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical includ http://www.homemediamagazine.com
Table of Contents Feed for the Digital Edition of Home Media Magazine - January 26 - February 1, 2009 Home Media Magazine - January 26 - February 1, 2009 Contents News TV DVD Reviews Just Announced Research Top 20 Sellers Top 20 Rentals Home Media Magazine - January 26 - February 1, 2009 Home Media Magazine - January 26 - February 1, 2009 - Home Media Magazine - January 26 - February 1, 2009 (Page Cover1) Home Media Magazine - January 26 - February 1, 2009 - Home Media Magazine - January 26 - February 1, 2009 (Page Cover2) Home Media Magazine - January 26 - February 1, 2009 - Home Media Magazine - January 26 - February 1, 2009 (Page 1) Home Media Magazine - January 26 - February 1, 2009 - Home Media Magazine - January 26 - February 1, 2009 (Page 2) Home Media Magazine - January 26 - February 1, 2009 - Home Media Magazine - January 26 - February 1, 2009 (Page 3) Home Media Magazine - January 26 - February 1, 2009 - Home Media Magazine - January 26 - February 1, 2009 (Page 4) Home Media Magazine - January 26 - February 1, 2009 - Home Media Magazine - January 26 - February 1, 2009 (Page 5) Home Media Magazine - January 26 - February 1, 2009 - Home Media Magazine - January 26 - February 1, 2009 (Page 6) Home Media Magazine - January 26 - February 1, 2009 - Contents (Page 7) Home Media Magazine - January 26 - February 1, 2009 - Contents (Page 8) Home Media Magazine - January 26 - February 1, 2009 - Contents (Page 9) Home Media Magazine - January 26 - February 1, 2009 - News (Page 10) Home Media Magazine - January 26 - February 1, 2009 - News (Page 11) Home Media Magazine - January 26 - February 1, 2009 - News (Page 12) Home Media Magazine - January 26 - February 1, 2009 - News (Page 13) Home Media Magazine - January 26 - February 1, 2009 - News (Page 14) Home Media Magazine - January 26 - February 1, 2009 - News (Page 15) Home Media Magazine - January 26 - February 1, 2009 - TV DVD (Page 16) Home Media Magazine - January 26 - February 1, 2009 - TV DVD (Page 17) Home Media Magazine - January 26 - February 1, 2009 - Reviews (Page 18) Home Media Magazine - January 26 - February 1, 2009 - Reviews (Page 19) Home Media Magazine - January 26 - February 1, 2009 - Reviews (Page 20) Home Media Magazine - January 26 - February 1, 2009 - Reviews (Page 21) Home Media Magazine - January 26 - February 1, 2009 - Reviews (Page 22) Home Media Magazine - January 26 - February 1, 2009 - Reviews (Page 23) Home Media Magazine - January 26 - February 1, 2009 - Reviews (Page 24) Home Media Magazine - January 26 - February 1, 2009 - Reviews (Page 25) Home Media Magazine - January 26 - February 1, 2009 - Reviews (Page 26) Home Media Magazine - January 26 - February 1, 2009 - Reviews (Page 27) Home Media Magazine - January 26 - February 1, 2009 - Just Announced (Page 28) Home Media Magazine - January 26 - February 1, 2009 - Just Announced (Page 29) Home Media Magazine - January 26 - February 1, 2009 - Top 20 Rentals (Page 30) Home Media Magazine - January 26 - February 1, 2009 - Top 20 Rentals (Page 31) Home Media Magazine - January 26 - February 1, 2009 - Top 20 Rentals (Page 32) Home Media Magazine - January 26 - February 1, 2009 - Top 20 Rentals (Page Cover3) Home Media Magazine - January 26 - February 1, 2009 - Top 20 Rentals (Page Cover4)
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.