National retailers that control the lucrative DVD market are pressuring Hollywood studios to give them the same favorable deals being offered to Web-based download services such as Apple Computer Inc.’s iTunes.
The latest expression of concern from retailers was a letter sent to studios by the president of Target Corp.
The letter warned that Target might have to reconsider the amount of shelf space allocated for movies if studios undercut the wholesale price of DVDs by giving online services a better deal on digital offerings, said a studio executive who saw the letter but asked to remain anonymous because he was not authorized to publicly discuss its contents.
Similar concerns have been expressed by Wal-Mart Stores Inc. and other retailers.
“Clearly there is some concern that there is some erosion by downloading,” Judith McCourt, market research director at Home Media Retailing, said Monday.
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