Used Game Wholesaler Enters DVD/Blu-ray Disc Market26 May, 2010 By: Erik Gruenwedel
Game Trading Technologies Inc., which works with retailers to buy used video games in exchange for store-based gift cards, May 26 said it is now accepting pre-owned DVD and Blu-ray Disc movies.
Hunt Valley, Md.-based Game Trading said it signed a deal with an unnamed New Jersey-based toy and juvenile products retail chain that allows its customers to trade in DVD/Blue-ray movies in exchange for store credit or gift cards.
Though frowned upon by the studios, sales of used packaged media generate significant incremental revenue for entertainment retailers while affording consumers an avenue to unload unwanted movies in exchange for store credit or cash.
For example, Hastings Entertainment said same-store sales of new and used DVD, Blu-ray and boxed sets increased 11.1% in the most recent quarter. Blockbuster reported revenue of more than $120 million from previously owned product.
Using proprietary pricing software, Game Trading allows third-party retailers to quickly assess the trade-in value of more than 80,000 DVD and Blu-ray titles.
Game Trading CEO Todd Hays said consumers nationwide possess hundreds of millions of dollars worth of games, video consoles and movies and are unaware of their value, having overlooked the growing inventory on their shelves at home.
“We like to think of these trading services as helping to facilitate a new type of economic stimulus,” Hays said.
Game Trading reported a net loss of $1.8 million on revenue of more than $11 million in its most recent financial period.