...with brief, occasional, italicized and sometimes gratuitous commentary…
• In Nebraska, the Lincoln Journal Star reports that Fareway Stores "plans to build a 6,500-square-foot full-service meat market" in southeast Lincoln.
The story notes that "its Fareway Meat Market is a new concept. The first one opened in Omaha last year, and the Lincoln location will be the second one ... Fareway is known for its grocery stores, which are mostly in small towns in Iowa and neighboring states. In Nebraska, the company has several stores in the Omaha area and one in Nebraska City."
• The Indianapolis Business Journal reports that "struggling Marsh Supermarkets has stopped paying rent on six Indianapolis stores, a move that might suggest the struggling chain is preparing to close them to shore up finances."
While not responding to questions about those specific locations, Marsh told the Journal that "the cutthroat grocery industry is prompting the company’s decision to further reduce its footprint."
The Journal notes that Marsh "has steadily shrunk since Florida-based Sun Capital Partners acquired it in 2006 for $88 million in cash and the assumption of $237 million in debt. Marsh, which had 120 groceries when the deal closed, now has 67."
• The Wall Street Journal reports that "Hollywood studios are preparing to upend decades of tradition by releasing movies at home less than 45 days after they debut on the big screen ... The studios and theater owners have long been at loggerheads over the issue, which Hollywood executives consider vital to their long-term survival and cinemas consider a threat to theirs. But now, faced with changing consumer habits fueled by proliferating on-demand entertainment options, the two sides are finally discussing a compromise."
The sole remaining issue, sources tell the Journal, "is when and on what terms it starts, not whether it does ... By year-end, it is likely films will start to become available on VOD several weeks after their theatrical debut for between $30 and $50."
This shift, the story says, "would transform the economic model of the movie business, while blurring the line that has long made film first and foremost an out-of-home, big-screen experience."
But movie companies don't have a lot of choice, since they are hungry for new revenue streams: "The home-entertainment business declined 7% in 2016 to $12 billion, following a 6% drop in 2015. Global box-office growth has been slowing, rising just 1% last year to $38.6 billion."
The first step in recognizing disruption is admitting that it is taking place. The second step is owning it, and trying to turn it to your advantage. This has been a long time coming, and the move by movie companies was predictable.
• In Nebraska, the Lincoln Journal Star reports that Fareway Stores "plans to build a 6,500-square-foot full-service meat market" in southeast Lincoln.
The story notes that "its Fareway Meat Market is a new concept. The first one opened in Omaha last year, and the Lincoln location will be the second one ... Fareway is known for its grocery stores, which are mostly in small towns in Iowa and neighboring states. In Nebraska, the company has several stores in the Omaha area and one in Nebraska City."
• The Indianapolis Business Journal reports that "struggling Marsh Supermarkets has stopped paying rent on six Indianapolis stores, a move that might suggest the struggling chain is preparing to close them to shore up finances."
While not responding to questions about those specific locations, Marsh told the Journal that "the cutthroat grocery industry is prompting the company’s decision to further reduce its footprint."
The Journal notes that Marsh "has steadily shrunk since Florida-based Sun Capital Partners acquired it in 2006 for $88 million in cash and the assumption of $237 million in debt. Marsh, which had 120 groceries when the deal closed, now has 67."
• The Wall Street Journal reports that "Hollywood studios are preparing to upend decades of tradition by releasing movies at home less than 45 days after they debut on the big screen ... The studios and theater owners have long been at loggerheads over the issue, which Hollywood executives consider vital to their long-term survival and cinemas consider a threat to theirs. But now, faced with changing consumer habits fueled by proliferating on-demand entertainment options, the two sides are finally discussing a compromise."
The sole remaining issue, sources tell the Journal, "is when and on what terms it starts, not whether it does ... By year-end, it is likely films will start to become available on VOD several weeks after their theatrical debut for between $30 and $50."
This shift, the story says, "would transform the economic model of the movie business, while blurring the line that has long made film first and foremost an out-of-home, big-screen experience."
But movie companies don't have a lot of choice, since they are hungry for new revenue streams: "The home-entertainment business declined 7% in 2016 to $12 billion, following a 6% drop in 2015. Global box-office growth has been slowing, rising just 1% last year to $38.6 billion."
The first step in recognizing disruption is admitting that it is taking place. The second step is owning it, and trying to turn it to your advantage. This has been a long time coming, and the move by movie companies was predictable.
- KC's View:
