Carrefour to offer movie downloads

Service launcing in four European territories

By Sam Andrews
PARIS -- Carrefour Group, the world's No. 2 retailer behind Wal-Mart, is entering the movie download business, launching a new service in its four key European territories: France, Spain, Belgium and Italy.

Announcing the initiative at the PEVE Digital Entertainment conference Friday, Carrefour's international non-food chief Christophe Geoffroy said the site will offer both download-to-own and download-to-rent movies and television programs.

Geoffroy, whose company currently has a 13.3% market share of the AC;2 billion DVD market in those territories, said the decision to launch into digital distribution is an extension of Carrefour's focus on entertainment.

"It's very important for Carrefour to have more than one point of sale," he said. "We have to be in contact with the consumer in their homes as well as in-store. We know full well that the market forecast for VOD is low at the moment, but we are convinced that it will develop over the coming years and we want to provide a legal solution for customers to see the best possible content."

While he declined to offer prices for the downloads, saying they will vary across the countries, he said they will be competitive with the market and that the process will be as simple and fast as possible.

"It's going to be very straightforward, not at all complicated, and we want to be able to give the consumer a very positive experience," he said. "After 2-3 minutes with a normal broadband connection, people can see the film, they don't have to wait an hour for it to download."

The move into digital did not spell the end of store-based sales, he aded, echoing calls by other speakers at the conference to look at other means of attracting consumers than price.

Carrefour to offer movie downloads

Service launcing in four European territories

By Sam Andrews
PARIS -- Carrefour Group, the world's No. 2 retailer behind Wal-Mart, is entering the movie download business, launching a new service in its four key European territories: France, Spain, Belgium and Italy.

Announcing the initiative at the PEVE Digital Entertainment conference Friday, Carrefour's international non-food chief Christophe Geoffroy said the site will offer both download-to-own and download-to-rent movies and television programs.

Geoffroy, whose company currently has a 13.3% market share of the €2 billion DVD market in those territories, said the decision to launch into digital distribution is an extension of Carrefour's focus on entertainment.

"It's very important for Carrefour to have more than one point of sale," he said. "We have to be in contact with the consumer in their homes as well as in-store. We know full well that the market forecast for VOD is low at the moment, but we are convinced that it will develop over the coming years and we want to provide a legal solution for customers to see the best possible content."

While he declined to offer prices for the downloads, saying they will vary across the countries, he said they will be competitive with the market and that the process will be as simple and fast as possible.

"It's going to be very straightforward, not at all complicated, and we want to be able to give the consumer a very positive experience," he said. "After 2-3 minutes with a normal broadband connection, people can see the film, they don't have to wait an hour for it to download."

The move into digital did not spell the end of store-based sales, he aded, echoing calls by other speakers at the conference to look at other means of attracting consumers than price.

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DENVER -- New figures from NPD Group suggest that the Amazon DRM-free digital music service is doing more to grow the overall digital music market as opposed to simply stealing customers from iTunes.

The research group says only 10% of Amazon customers had previously bought music from Apple's iTunes service. While many tagged the Amazon service as an "iTunes killer" when it first launched, the music industry's hope all along was never to cannibalize iTunes sales but rather encourage new digital buyers. NPD's data suggest exactly that is happening.

"The fact that Amazon's early growth does not appear to be at the expense of Apple iTunes is a healthy indication that the digital music customer pool can expand into new consumer groups who have not yet joined the iTunes community," said NPD analyst Russ Crupnick in a statement.

NPD says Amazon is now second only to iTunes in the a la carte digital download category (for those keeping score). The company did not disclose how many users Amazon has attracted in total, however it did say iTunes volume is 10 times that of Amazon.

Some interesting demographic breakdown has emerged between the two services as well. NPD says 84% of Amazon customers are male, compared to 44% of iTunes, but only 3% of Amazon customers were teens, compared to iTunes' 18% (the latter attributed primarily to the popularity of iTunes gift cards.)

NPD says Amazon's growth is likely more due to existing Amazon customers adopting the new service rather than due its lower pricing or DRM-free policies.

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