EMA: Locks on Home Video, Games Could Yield $6B Annually22 Jun, 2009 By: Chris Tribbey
Locks on DVDs and video games, similar to those on clothing and alcohol that are removed at the cash register, could yield for retailers, studios and video game publishers up to $6 billion annually, according to a new study.
The Entertainment Merchants Association (EMA) will share the results of the research firm Capgemini study June 23 at the Entertainment Supply Chain Academy conference in Los Angeles.
“It is intuitive that, if we can utilize emerging technology to reduce the shrink in the DVD, Blu-ray Disc and video game categories and eliminate barriers erected to deter shoplifting, consumers will have easier access to the products, additional retail channels will carry these products, and costs will be eliminated from the supply chain,” said EMA CEO and president Bo Andersen.
Mark Landry, VP of telecommunications, media and entertainment for Capgemini, said the study found that using the locks, termed “benefit denial” technology, would reduce returns, packaging costs and supply chain losses.
The study projects that benefit denial technology will enable retailers to increase revenue from by cutting shoplifting from open merchandising, reducing out-of-stock merchandise, adding new distribution channels and allowing for legitimate sales to replace the loss of stolen merchandise, Landry said.
“The revenue enhancements would be spread broadly among retailers, studios, publishers, distributors and replicators,” he said.
Seven retailers, seven studios and video game publishers, a replicator and a wholesaler participated in the study. EMA will next look into deployment costs for the technology, which could be used in stores by the fourth quarter of 2010.
“The study effectively greenlights further evaluation and development of implementable benefit denial technologies at retail,” said Mark Fisher, EMA’s EVP of membership and strategic initiatives.