Monday 25 January 2010

Tesco- the (private-label) movie!

Weekend news reports indicate Tesco are in collaboration with Amber Productions in the launch of a multi-million-pound production arm poised to make films of books by a slew of bestselling authors.
Films under the joint venture will be initially available exclusively as DVDs through Tesco stores, online and through Tesco Direct. Tesco will focus solely on marketing and sales of the films under the partnership and will have no say in the content of the screenplays.

Tesco's new venture offers the usual blend of opportunities and threats for those involved.

Tesco can bring the following to private-label moviemaking: a fully segmented and databased audience via Clubcard, ability to package book, film & snacks, guaranteed distribution and facings, with minimal third party restrictions ref coordinated POS and instore merchandising
Tesco-partnership offers authors: "We are able to involve the writers at every stage, even with the casting decisions. And Tesco sells an enormous amount of books, of course; so for an author to have his DVDs on the shelf alongside his books and to sell them simultaneously sounds like a very good thing,"

Trade Issues for:
- Partner-studios: Tesco will provide security of financial backing, effective distribution, detailed feedback on audience reaction
- Competitors studios and distributors: big-hit movies possibly becoming a means of attracting movie-goers to the store, there to be confronted in the movie-aisle by Tesco private-label, as-good-as but cheaper alternatives.. Need to treat the independent HE retailer as a 'living billboard', fast! (See Cue Entertainment, January issue)
- Traditional Home Entertainment retailers: watch and learn from Tesco!
- Traditional cinemas: possibility of Tesco instore cinemas above stores in key areas?
- Suppliers of other categories: with its novelty and the impact of its instore theatre to support its private label movies, Tesco's new venture means suppliers need to fight even harder for Tesco mind-space (i.e. more need to analyse and demonstrate the contribution of traditional brands to Tesco profitability)

Finally, how soon will Tesco's new venture morph into Generation 4: Tesco Finest, better than national brands, but 20% cheaper?

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