Wednesday, February 11, 2015

Target Ticket Follows Redbox Instant To Close

Building a streaming aggregator is not an easy task.  It takes content deals, it takes customers, and it takes a solid infrastructure to manage the end to end delivery.  It doesn't take much for it to go wrong.  And it takes a sound strategy and firm execution to be successful.  Netflix and Amazon Instant have easily become the standouts of success.

Sling TV has just launched and word is that they are facing some difficult technological issues managing its streaming activity.  And while they push forward, Target Ticket, a streaming service created by Target to compete against other retailers like Walmart, has decided to shut down.  Never heard of Target Ticket, you are probably not alone.  I am a frequent visitor to Target and can't recollect ever seeing any marketing in-store or in their circulars. 

Their demise means that consumers that purchased digital product will have to switch to CinemaNow to continue to get access.  But with content that CinemaNow does not have rights to, customers will get credits instead.  That certainly is the biggest challenge when owning digital content that you don't have direct ownership of.  So what is next?  How long till CinemaNow, Walmart's Vudu service or even UltraViolet or another streaming service decides it can no longer compete with Apple and Amazon?  The loss of Target Ticket may simply be a precursor for more to come. 

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