Originally Posted by Kosty
I think that's a large factor that has often not been discussed much.
The closure of Circuit City in particular in March 2009 made a difference as they were among the leading packaged media retailers. Their liquidation sale in 1Q 2009 affected the 1Q 2009 vs 1Q 2008 comparisons and also made a one time effect in the annual comparisons plus eliminated that sales channel forever in the future.
Although Circuit City closed for reasons that were predominately not related to software sales they changed the marketplace forever when they went belly up in 2009. That eliminated a major channel for brick and mortar packaged media sales that many consumers routinely bought DVD units from for many years.
The other rentailer closures for Hollywood Video/ Movie Gallery Blockbuster locations and Borders etc all have had an effect to as they eliminated locations that consumers did impulse purchases of packaged media as well.
Nice observation that we have not talked about much.
I brought this up several times over the last year, yet you kept on ignoring it and calling me a pessimistic doom and gloomer.
Impulse buying is less when you have less retail footprint. You bashed giz and myself all last year and said it made little difference. Boy how times have changed. :rolleyes
Every year that goes on will have less and less retail footprint for OD.
What do you think is going to happen when Best Buy goes belly up? The writing is on the wall for them. They can't compete with Walmart and amazon.