Digital distribution won’t “cannibalise” retail, says Take-Two

Take-Two doesn’t believe that digital distribution will take over disc-based retail. Not for some time anyway.

While digital distribution has quickly moved to dominate the music industry, Take-Two CEO Ben Feder believes that the games retail market will be more resilient.

“While an ever-growing segment of our fans are comfortable with acquiring content digitally, the retail channel will continue to play a valuable role in reaching the majority of our fans,” Feder told MCV.

“Overall, I believe that digital distribution won’t cannibalise retail sales of console games in the short-term. This isn’t the music industry all over again. Our industry has some of the best content protection via the consoles, which helps maintain the value of our IP.”

Feder added that other forms of entertainment have proved that new sales platforms can co-exist harmoniously. “As you look at the history of the entertainment industry, new platforms have grown, not cannibalised, existing markets,” he said.

“VHS recorders almost doubled the size of the business for movie studios, despite fears that home entertainment would cannibalise theatrical revenues. Cable and pay TV had a similar effect for TV shows and movies. I believe downloadable content will ultimately grow the business for games publishers.”

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