To better focus on theatrical new releases, Best Buy will consolidate the number of vendors it buys from directly, which effectively reduces the number of slower-selling SKUs in stores, Video Business reports.
In other words, Best Buy will give more prominent billing to high-demand releases, but there will be more competition among obscure titles for the remaining shelf space. The decision will mostly affect indie studios, as they expect Best Buy to name a small number of "gatekeepers" -- either traditional wholesalers or indie labels -- to decide what goes in stores.
A spokesman said vendors can be eliminated without reducing the number of products available to the retailer. "We are constantly looking to ensure we are offering all relevant titles to customers in the most efficient way,” the spokesman told Video Business. “We will continue to offer choice, meaning all types of new releases will be supported either through BestBuy.com or in our stores.”
In January, Mike Vitelli, Best Buy's vice president of consumer operating groups, said some categories in the store are "over-assorted" and that cutting down SKUs could result in a "less confused customer" and faster turnarounds. Reacting to today's news, at least one indie distributor understands that the increasing number of DVD and Blu-Ray offerings can crowd shelves.
But not all indies are optimistic about the changes. One source worried that the gatekeepers will promote their own products instead of giving all studios a fair shake at shelf space.
The source said this creates an opportunity for other stores, particularly online retailers like Amazon.com, to move in and offer what Best Buy cannot. Ladies and gentlemen, the Long Tail at work.
