Print

Email story

Comment

Email editor

Stores protest online DVD prices

By TIMES WIRES
Published October 10, 2006

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, according to the Associated Press.

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.

In a prepared statement Monday, Target called for "equity between the alternative means of delivering movies to consumers."

"Target does not object to competition, but we do expect a level playing field upon which to compete with the online services," the company said.

At issue is the low price some studios charge for films downloaded through such fledgling services as MovieLink, CinemaNow and Amazon.com's recently launched Unbox video store.

The dispute comes amid strong DVD sales, most notably multi-disc packages of full TV seasons that command premium prices.

Online movie download services now account for less than 10 percent of movie sales, hardly a threat to retailers.

But retailers fear a shift in the future, when downloaded movies can be viewed on TVs as well as computer screens.

Ray Noorda, software pioneer, dies at 82

Ray Noorda, the Novell Inc. founder who battled Microsoft Corp. in the early years of network computers, died Monday (Oct. 9, 2006) of complications from Alzheimer's disease. He was 82.

Mr. Noorda, the so-called Father of Network Computing, had suffered from Alzheimer's for years and died at his home in Orem, Utah, 35 miles south of Salt Lake City, according to a statement from family members.

Mr. Noorda became chief executive of Novell in 1983 and made it a software powerhouse, dominating the market for products that manage corporate networks and let individual computers share files and printers. But Microsoft caught up by the mid 1990s.

Microsoft chairman Bill Gates once called Mr. Noorda the "grumpy grandfather" of technology.

Monster CEO resigns, cites stock option investigation

Monster Worldwide Inc., owner of the most-used job-listings Web site, said founder Andrew McKelvey resigned as chairman and chief executive officer, citing the time consumed by a probe of stock option grants.

McKelvey, 71, was replaced as CEO by William Pastore, 58, the New York-based company said in a statement Monday. Monster also named an executive committee of independent directors led by Sal Iannuzzi and said McKelvey was elected chairman emeritus.

Monster said in July it may need to restate financial results for 2005 and earlier years to account for stock option costs, and last month suspended Myron Olesnyckyj, its general counsel.

PNC bank to acquire rival for $6-billion

PNC Financial Services Group Inc., one of the nation's largest regional banks, said Monday it is buying Baltimore-based Mercantile Bankshares Corp. for about $6-billion as part of an expansion plan targeting wealthy, fast-growing markets.

The Pittsburgh company said the cash-and-stock deal will further its growth along the affluent New Jersey-to-Washington corridor, adding hundreds of new branches in Maryland, the District of Columbia, Virginia and Delaware.

Northwest, mechanics reach tentative deal

Northwest Airlines Corp. and its striking mechanics announced a tentative agreement Monday that would end the 14-month-old strike, but would give few workers their jobs back.

Approval by union members would end a walkout that began in August 2005 but long ago ceased to have any visible impact on the airline, which hired permanent replacements and outside contractors to replace the striking members of the Aircraft Mechanics Fraternal Association. Northwest said replacement workers would keep their jobs.

[Last modified October 9, 2006, 22:51:31]