Target (S TGT) launched its own digital video service Wednesday, offering consumers access to more than 30,000 movies and TV show episodes. The service, dubbed Target Ticket, is entering a crowded field, but the retail chain may succeed by marketing it to its own in-store customers.
Target Ticket offers a mixture of VOD sales and rentals, and is available on a number of different devices including Roku boxes, Samsung smart TVs, Xboxes (s MSFT) as well as iOS (S AAPL) and Android (S GOOG) devices. The company is also offering individual profiles for each user, kind of like Netflix does for its service.
One can expect that Target is going to take advantage of its stores to get the word about about Target Ticket. Participants of Target’s loyalty program already get five percent off any rental or purchase, and I wouldn’t be too surprised to see marketing material added to every TV, game console and Blu-ray player sold at Target from now on.
This strategy has been working for Walmart, (S WMT) which acquired the digital video storefront Vudu back in 2010 and has since managed to turn it into a viable iTunes competitor. However, the combination of retailer and digital video service isn’t a guarantee to success: Best Buy’s (S BBUY) Cinemanow service hasn’t seen nearly as much success as some of its competitors.