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October 01, 2004

So Long Big Box Retailers, It's Been Good To Know Ya!

Bill Dreher, an analyst with Deutsche Bank, said he believes Wal*Mart could start selling private-label high-definition TVs in select stores as soon as Black Friday, the day after Thanksgiving that traditionally marks the start of the holiday shopping season. Wow!

When the largest retailer on the planet decides it's time to get into a market, no one can compete. As technology gets more complicated to build, it gets easier to use and big screen HDTVs, the last hope of big box guys like Best Buy & Circuit City and the only hope for specialty guys like Tweeter and Ultimate, are about to become commoditized. Not an n-column price war with big manufacturer's rebates at year end, not a marketing war with service and installation as unique selling principles - this is brand new territory. Wal*Mart is going to make these set themselves. Private label. That means, no comparison shopping, no price wars, no nothing - just The Lowest Price, Always.

Obviously, this is great news for consumers. (Not high end consumers, they're screwed because the number of retail outlets that sell high end gear is going to be limited to the last survivors and they won't be doing any deals) Average Joe's who want an HDTV are going to get them at the lowest possible price and Wal*Mart will see to it. Trust me, they're going to work and they will be low priced. But, what does this really mean for the Advanced Television business?

(Continued at EmmyAdvancedMedia)


Posted by yatta at 01:07 PM