TK's MORNING BUZZ: Is Ingram the New Blockbuster of the Distribution Jungle?11 Oct, 2000 By: Thomas K. Arnold
Video distribution now has its own Blockbuster.
With its acquisition of Major Video Concepts, Ingram Entertainment expects to have a commanding market share of more than 50% of all rental product channeled through distribution. That's more than all six of its remaining wholesaler competitors combined.
Add to this the fact that Ingram is now the only national distributor with an official stake in distributing product from all six major studios, and you’ve truly got an 800-pound gorilla with the power to become the king of the distribution jungle.
Already, parallels between Blockbuster and Ingram can be drawn.
Like Blockbuster, Ingram is on a quest to boost market share. Right after Universal restricted distribution of its product to Ingram and two other distributors, Ingram sales reps began calling up their non-chosen competitors’ accounts, urging them to switch and send in credit applications so they could continue to buy Universal product.
Like Blockbuster, Ingram is aligning itself with the studios. David Ingram calls studio executives his “partners” and says he agrees with them when they say there are “too many distributors chasing too few accounts.”
And, again like Blockbuster, Ingram is now finding itself in the hotseat, with competitors screaming about unfair competition and talking about going to court for help.
ETD head Ron Eisenberg told Video Store Magazine he plans on asking the FTC to investigate “antitrust implications,” the same charge cited in the FAIR action against Blockbuster.
Ingram’s response? “I like Ron,” he said, “and I hope he doesn't drag us down and waste our time in courtrooms.”
A move to Dallas is not anticipated.
Comments? Contact TK directly at:TKArnold@aol.com