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From July 2008
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This is a new Power Player category this
year, replacing the more narrowly-focused
booksellers grouping. Though it might, at first
glance, appear to be a hodge-podge of diverse
specialty stores, there is more overlap and
convergence than the companies’ traditional
realms would indicate.
Nothing embodies this more than Borders’ current
concept stores, which bring together digital and
Internet options with the hands-on approach to
books, CDs and DVDs. Borders is opening 14 of
these prototype stores this year, combining
170,000 book, music and movie titles on the
shelves with digital centers where customers can
download e-books, mix and match songs on CDs and
create electronic photo albums, family histories
and the like.
Apple’s iTunes Store is now the largest seller
of music, surpassing Wal-Mart, Amazon.com, Best
Buy and Target. And iTunes broke the news in May
that it would sell movie downloads, beginning
the same day the titles are released on DVD.
Blockbuster, once viewed as a dinosaur lumbering
toward extinction, has rejuvenated itself to the
point where rentals constitute only half its
revenues. Blockbuster’s Total Access program
enables it to compete with Netflix and other
electronic retailers, while video games
constitute a growth area for store merchandise.
With the release of the highly-anticipated
“Grand Theft Auto IV” earlier this year, for
example, Blockbuster enjoyed a 4.5 percent share
of the sales, compared with the 1 to 1.5 percent
share it usually captures in game sales.

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