Welcome to Rye Country Day's Economic Blog. Here you will find perspectives by students taking Economics at Rye Country Day School. It is meant to be a forum where students can openly express their ideas and take positions on relevant economic issues. I urge everyone to participate in presenting their own ideas in an open manner so that we can all learn from each other. Regardless of whether you are currently taking Economics, everyone is invited and encouraged to comment on articles and get involved. Feel free to e-mail me, Alex Osborne at firstname.lastname@example.org , with comments or suggestions.
Sunday, January 21, 2007
Featured Entry - Wal-Mart Plans to Test Online Films
Wal-Mart is planning to test, much the way itunes has, the selling of full movies online. The program will be launched next year, and the business plan is pretty fantastic. In order to avoid the extinction of DVD’s, Wal-Mart will have its consumers buy the DVD of any given movie, and charge only a bit extra for online downloading. Essentially, a user who – because we live in a society that demands instant satisfaction – cares to watch a movie can buy a DVD online and pay an extra few dollars to download that same film to his or her personal computer. Wal-Mart is smart to strategize as they have. In doing so, they will protect their own DVD stock, as users will be able to watch the movie right away on a personal computer, but will also be ordering the $10 to $15 DVD, which will be received by mail.
With the exception of launching this new program, hosting films online cost Wal-Mart little extra and is almost certain to generate more revenue. It also helps them to, possibly in the future, phase out some products offered at stores by offering them online instead.