Costco 3D: The Rise of the In-Store Network
Coming to a warehouse club near you…
The announcement that Costco has reached agreement with Premier Retail Networks (PRN) to expand its in-store digital network to include a dedicated 3D content channel is big news, but also brings up questions about in-store execution and whether or not the efforts will have an appreciable effect on consumer demand for the technology in their homes.
Both companies expressed happiness with expanding on a business relationship started in 2004.
Paul Latham, vice president of membership and services at Costco, said PRN provides it "with new and innovative ways to engage our members and bring the highest quality technology to in-store media."
"We are excited to bring 3D to Costco," said PRN President Ahmad Ouri. "Costco members benefit from this new platform as they can learn about and compare products and be entertained while they shop."
Content, 3D and otherwise, will be available in Costco’s 400 warehouses in the U.S. Each month, according to Nielsen, some 45 million members shop Costco’s domestic locations.
Under the agreement, Costco will receive:
- Custom HDTV content, strategic programming, ad sales, network operations, media management and scheduling;
- Programming to demonstrate the warehouse club’s services and department offerings as well as branded Costco consumer electronics education;
- Access to custom HD entertainment and sports programming from more than 150 content providers.
Costco and PRN have not specified if glasses will be needed to view the 3D content. Still to be answered, glasses or not, is if consumers in any substantial numbers will pony up the extra dollars to put 3D sets in their homes.
- Premier Retail Networks LLC (PRN) Extends, Expands Relationship with Costco – Premier Retail Networks LLC
Discussion Questions: What is your take on the role and effectiveness of in-store media networks? Will access to 3D content in stores, Costco and elsewhere, have an appreciable effect on unit sales?