September 4, 2013
Will Target Ticket Steal Video Streaming Show?
It seems just about everyone wants in on the subscription streaming video service business. According to various reports, Target will soon debut its own service called Target Ticket, which will allow consumers to rent or purchase movies and television shows that can be played on a wide variety of digital devices. Upwards of 15,000 titles will be made available through the service.
According to TechCrunch, movies will be available for rent for $3.99 or $4.99. Individual television shows will cost $2.99 while an entire season can be streamed for $34.99. Movies can be purchased for $14.99, although some are offered at $12.99. People who rent movies need to watch them within 48 hours of first viewing. Some titles are being made available on Target Ticket prior to DVD release.
Target Ticket has been in beta test for the chain’s team members and is expected to make its public premiere this fall. A wide variety of networks including ABC, AMC, CBS, Fox, HBO, Showtime, Starz and others will make content available through the service.
Unlike Netflix and some other services, Target Ticket members will not pay a monthly fee. Target REDcard holders will get their normal five percent discount with all transactions. Target rival Walmart has been in the video streaming space since 2010 when it acquired Vudu.
- Target testing its own movie streaming service – Star Tribune (tiered sub.)
- Target Ticket, Target’s Video Download & Rental Service, Nears Launch – TechCrunch
- Target Ticket
- Target Nears Debut Of Streaming Video Service – Twin Cities Business
- Target Prepping ‘Target Ticket’ Movie Service for Fall Launch – PCMag
BrainTrust
Recent Discussions
Discussion Questions
What will it take for Target Ticket to succeed in the video streaming business? How will the streaming business shake out considering the number of companies competing in the space?
Poll
For Target to succeed, it will need Netflix to go out of business.
I’m sorry, but Target’s concept is weak, and Netflix is miles ahead already. For a flat fee, you can watch a ton of stuff, and the technology is great, so have fun Target, it is going to be a tough sell.
The short answer is far more than it is offering now. There are too many alternatives. As Tony pointed out, Netflix is already there with a superior offer.
$3.99 for a movie that Redbox rents for $1.29? Not so much.
Target needs to have competitive pricing—which does not appear to be the case—just to be considered by consumers.
The only advantage Target currently has over video streaming competitors is the positive perception of the brand as a purveyor of value. However, the prices listed in the article don’t reflect the aforementioned brand personality, and the video streaming service might end up damaging the brand in the long term.
Not sure there is a compelling reason for another player to enter this space with Netflix and others, like Amazon, already up and running.
Target is too late to the game to have a major impact. Netflix, Amazon and Apple dominate the space. Unless they are willing to slash prices, I think this is a waste of time and financial resources.
What will it take for Target Ticket to succeed? They will have to buy Netflix.
This seems like an odd, better-late-than-never bet from Target…three years after Walmart and with many others entering the fray, including companies like Intel that are on the brink of introducing streaming set-top boxes and other home solutions.
To be fair, I’m sure Target doesn’t have aspirations to overtake the market, but I don’t see how video streaming adds value to Target’s business even as a play-to-participate move.
For success, Target has to think of itself as an online player. Customers have to think of Target as an online resource. Neither exists.
What is going on at Target? They really seem to be losing focus and missing the mark lately.
At least the shelves are stocked….
It is not likely that Target is even considering success along the lines of competing with services such as Netflix or Amazon. Rather, this looks like an enhancement of service to Target consumers who like the brand and find these offers enhance the value and convenience. The pricing indicated in not disruptive and the selection is not dispositive in the market.
On the other hand, this kind of service is now available more or less in a “white label” package so development costs and licensing are rather low risk for a service of this sort. Like we see at Walmart or Toys “R” Us, there is little downside as the content providers get what they want and here Target enhances the offer. So, this is an evolution of services and not a disruption in the market. It will be to Target to define what success is here.
It is obvious that the executives in the empire of Target are looking into the Information Technology (IT) market for growth. It is humorous to see these captains of retail continuously fail. It is not the place in which they will find success over the long haul, and may pull needed support funding from the core business plan at a time when it is poor judgment to spend blindly. What is the root cause of failing over and over at the same thing?
Good luck to them. How do they plan to compete with Netflix when they are so far behind?
Keep in mind that it’s unlikely that Target is trying to compete with Netflix. It’s more likely that they are trying to carve out “their space” and grab share from a declining physical market that’s shifting to a growing digital market. Services like Walmart’s Vudu, Toys “R” Us, Best Buy’s CinemaNow, and a plethora of other digital service providers are different than Netflix and Redbox. 1) Customers don’t have to leave their home to go the mailbox or a kiosk; 2) They don’t have to worry about incurring late fees (Redbox); 3) They don’t have to wait for 28 days for new release titles; 4) They can purchase the digital movie for people who like to watch the same title repeatedly (kids – bullseye for Target!); 5) Vudu and CinemaNow offer a disc to digital service allowing people to convert their DVDs to digital for viewing across devices and locations; etc
Take the time to dig into the marketplace and you’ll see there is tremendous opportunity. The big question is how will the services differentiate themselves to get viewers choosing their service more often than not? Exclusive deals for content? Target’s Red Card—will 5% really be a differentiator? CinemaNow (owned by Best Buy) giving Reward Zone points?
It’s an interesting, evolving industry that is more complex than “we already have Netflix.” Vision is how disruptions occur, not accepting what already exists.
One of the best things about Netflix is that if you don’t like a movie or show you can turn it off and choose something different without feeling like you have lost money. Target’s model is a throwback to the video rental days where if you got a dog movie you were stuck with the fee.
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For Target to succeed, it will need Netflix to go out of business.
I’m sorry, but Target’s concept is weak, and Netflix is miles ahead already. For a flat fee, you can watch a ton of stuff, and the technology is great, so have fun Target, it is going to be a tough sell.
The short answer is far more than it is offering now. There are too many alternatives. As Tony pointed out, Netflix is already there with a superior offer.
$3.99 for a movie that Redbox rents for $1.29? Not so much.
Target needs to have competitive pricing—which does not appear to be the case—just to be considered by consumers.
The only advantage Target currently has over video streaming competitors is the positive perception of the brand as a purveyor of value. However, the prices listed in the article don’t reflect the aforementioned brand personality, and the video streaming service might end up damaging the brand in the long term.
Not sure there is a compelling reason for another player to enter this space with Netflix and others, like Amazon, already up and running.
Target is too late to the game to have a major impact. Netflix, Amazon and Apple dominate the space. Unless they are willing to slash prices, I think this is a waste of time and financial resources.
What will it take for Target Ticket to succeed? They will have to buy Netflix.
This seems like an odd, better-late-than-never bet from Target…three years after Walmart and with many others entering the fray, including companies like Intel that are on the brink of introducing streaming set-top boxes and other home solutions.
To be fair, I’m sure Target doesn’t have aspirations to overtake the market, but I don’t see how video streaming adds value to Target’s business even as a play-to-participate move.
For success, Target has to think of itself as an online player. Customers have to think of Target as an online resource. Neither exists.
What is going on at Target? They really seem to be losing focus and missing the mark lately.
At least the shelves are stocked….
It is not likely that Target is even considering success along the lines of competing with services such as Netflix or Amazon. Rather, this looks like an enhancement of service to Target consumers who like the brand and find these offers enhance the value and convenience. The pricing indicated in not disruptive and the selection is not dispositive in the market.
On the other hand, this kind of service is now available more or less in a “white label” package so development costs and licensing are rather low risk for a service of this sort. Like we see at Walmart or Toys “R” Us, there is little downside as the content providers get what they want and here Target enhances the offer. So, this is an evolution of services and not a disruption in the market. It will be to Target to define what success is here.
It is obvious that the executives in the empire of Target are looking into the Information Technology (IT) market for growth. It is humorous to see these captains of retail continuously fail. It is not the place in which they will find success over the long haul, and may pull needed support funding from the core business plan at a time when it is poor judgment to spend blindly. What is the root cause of failing over and over at the same thing?
Good luck to them. How do they plan to compete with Netflix when they are so far behind?
Keep in mind that it’s unlikely that Target is trying to compete with Netflix. It’s more likely that they are trying to carve out “their space” and grab share from a declining physical market that’s shifting to a growing digital market. Services like Walmart’s Vudu, Toys “R” Us, Best Buy’s CinemaNow, and a plethora of other digital service providers are different than Netflix and Redbox. 1) Customers don’t have to leave their home to go the mailbox or a kiosk; 2) They don’t have to worry about incurring late fees (Redbox); 3) They don’t have to wait for 28 days for new release titles; 4) They can purchase the digital movie for people who like to watch the same title repeatedly (kids – bullseye for Target!); 5) Vudu and CinemaNow offer a disc to digital service allowing people to convert their DVDs to digital for viewing across devices and locations; etc
Take the time to dig into the marketplace and you’ll see there is tremendous opportunity. The big question is how will the services differentiate themselves to get viewers choosing their service more often than not? Exclusive deals for content? Target’s Red Card—will 5% really be a differentiator? CinemaNow (owned by Best Buy) giving Reward Zone points?
It’s an interesting, evolving industry that is more complex than “we already have Netflix.” Vision is how disruptions occur, not accepting what already exists.
One of the best things about Netflix is that if you don’t like a movie or show you can turn it off and choose something different without feeling like you have lost money. Target’s model is a throwback to the video rental days where if you got a dog movie you were stuck with the fee.