DVD Station Develops Next-Generation DVD Rental Service at Metreon -- a Sony Entertainment Center.Entertainment Editors/Business Editors/High-Tech Writers SAN FRANCISCO--(BUSINESS WIRE)--May 27, 2004 Emerging Digital Media Firm Offers New Alternative to Internet Subscription and Video Super Store Business DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. Station, Inc., a leading technology developer for digital entertainment retailing, today announced strong results on a unique new retail media concept established at Metreon -- A Sony Entertainment Center. DVD Station brings the best of the web shopping experience to the physical store. Customers browse for product on a "virtual shelf" that mimics the experience of walking the aisles while sophisticated merchandising algorithms assist them in finding impulse purchase An impulse purchase is an unplanned or otherwise spontaneous purchase. One who tends to make such purchases is referred to as an impulse buyer. Marketers and retailers tend to exploit these impulses which are tied to the basic need for instant gratification. from the store's broad inventory selection. Using a patent-pending touch screen interface, customers browse thousands of films in different categories -- by movie genre, actor, or director -- and then rent and buy those DVDs and video games See video game console. . DVD Station worked with Metreon's executive team to create a real-time retail laboratory on the center's Ground Level Floor. This partnership, one of several Metreon incubation efforts, has surpassed expectations and delivered breakthrough process for DVD rentals, improving upon revenues per sq. ft, customer retention, and reinvigorating the DVD catalog business. The concept was cultivated over a six-month period, where Metreon provided physical presence, staffing, co-op marketing, and market feedback. During this period, DVD Station experienced increased customer retention, sales, and catalog orders generating over 3000 new customers. Building a Better Video Store DVD Station creates high volume, large selection, and small footprint video stores -- an approach delivering substantial advantages versus the traditional video superstore su·per·store n. A very large retail store that stocks highly diversified merchandise, such as groceries, toys, and camera equipment, or a wide variety of mechandise in a specific product line, such as computers or sporting goods. . Key Metrics Video Superstore Avg. DVD Station ------------------------- ---------------------- ------------------- Revenue/Sq. Ft $160 $1,002 Store Operating Expense (% of Revenue) 40% 12% Customer Visits/Month 2x 3.8x Speed of Transaction 27mins 5mins * Source: Industry SEC Filings (BBI, HLYW), DVD Station analysis and research, 2002-2004. Collaborative Development "The Metreon location provided a critical R&D laboratory to develop a retail process that we are replicating with success across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ," said Tim Hogan, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of DVD Station. "Since the launch of this flagship store, this new retail concept has been deployed across several retail channels including: grocery, health and fitness, corporate campuses, and specialty retail. Other high-traffic locations include a new store in Grand Central Station in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ." About DVD Station, Inc. DVD Station, Inc. enables businesses to create new revenue streams via interactive retail solutions that tap into the fast-growing $50 billion digital home entertainment market. The company's turnkey systems A complete system of hardware and software delivered to the customer ready-to-run. In other words, just "turn the key" and go.  A Turnkey Video System integrate a robust combination of hardware, software, and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" to provide consumers with a unique and entertaining retail experience. The company offers convenient alternative to the traditional video store and a welcome addition to mail-order DVD rental services. |
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