New anti-theft technology on the way

[Batman1980]

Industry Researches Disc Activation against Theft
Posted June 23, 2009 10:40 AM by Juan Calonge
The Entertainment Merchants Association (EMA) today announced the results of a study on the advantages of adopting “benefit denial” technology against the theft of DVDs, Blu-ray Discs, and video games. The study found that this technology could bring as much as $6.8 billion annually in increased sales, cost savings and cost avoidance. If further studies are positive, the technology could be deployed in late 2010.

Benefit denial is the concept of denying the shoplifter or internal thief the ability to use stolen goods. For example, the apparel industry deploys security tags containing sealed vials of permanent dye that break if forcibly removed from a garment, rendering the item unsuitable for wear, return, or resale.

In the home entertainment industry, benefit denial would involve shipping BDs to retail stores in a disabled state. They would then be unlocked during a point-of-sale transaction. Such technologies have the potential to nearly eliminate internal theft.

Up to now, theft has prompted many retailers to merchandise Blu-ray Discs in locked cases, keeper racks, and other systems that, while prevent shoplifting, also discourage sales. Internal theft also imposes tremendous costs on the supply chain.

Mark Landry, Vice President, Telecommunications, Media and Entertainment, Capgemini, commented: “The study projects that benefit denial technology will enable retailers to increase revenue from sales lifts from open merchandising, reduced out-of-stocks, new distribution channels, and legitimate sales replacing sales of stolen merchandise. The revenue enhancements would be spread broadly among retailers, studios, publishers, distributors, and replicators.”

EMA's project regarding benefit denial technology is called “Project Lazarus”. In the next stage of the project, EMA will quantify the costs of deployment of benefit denial technology for DVDs, Blu-ray Discs, and video games. If the results continue to be positive, the technology could be deployed in stores in the fourth quarter of 2010.

Source: Entertainment Merchants Association
Hopefully this is cost effective for ALL merchants.