Smaller screens and even smaller retailers were fit to be featured this past week. Let's take a closer look.
Google eats plastic
Unless you were an advertiser looking to tap into the search hub that Google (NASDAQ:GOOG) has become, or a corporate client with an Intranet craving for Google's heavy-duty appliances, odds are you never had to rifle around for your credit card while on Google.com.
Well, that changed on Monday, when the company rolled out its digital video download store. Thanks to its partnership with CBS (NYSE:CBS), some of the offerings include current hits like CSI and Survivor, though you can also dig into some of the syndicated classics like The Brady Bunch, I Love Lucy, and The Ed Sullivan Show. The shows are priced mostly at what has become the standard $1.99 per digital episode. However, Google offers pricier fare: $3.95 for some NBA basketball games, with a few concerts and obscure films fetching a pretty steep $14.99 per download.
We'll see how this all plays out for Google. As a company that has relied on advertising to make up between 98% and 99% of its total revenues over the past few quarters, diversification seems like a good thing.
Still, it remains to be seen how well digital videos will sell, of course. Most of the studios have sided with at least one provider, taking advantage of the growing number of high-speed Internet users and cheaper bandwidth. So now I'm left wondering whether it's worth $1.99 to see Marcia Brady get socked in the face with a football. I don't feel compelled at the moment -- not in the same way that I'm willing to buy a song online for $0.99. However, that's likely to change as the selection gets better and computers and living rooms continue to converge.
There is no treat in retreat
Some pretty notable retailers also began scaling back this past week. Toys "R" Us and OfficeMax (NYSE:OMX) each announced that they would be closing some of their poorly performing locations.
It does make sense. Their competitors are simply doing a better job. Toys "R" Us was once the only toy retailer that mattered. These days, Wal-Mart (NYSE:WMT) sells more playthings. OfficeMax was once a dominant player in office supplies, and now it's an afterthought to Office Depot (NYSE:ODP) and Staples (NASDAQ:SPLS).
It's a shame to see the fallen titans bending even lower. Not all retailers can age gracefully. It's why investors in a company like Wal-Mart, despite its disappointing share price performance over the past few years, should be grateful that they're still shareholders in a company that continues to grow.
The headlines behind this week's stories:
Until next week, I remain,
Longtime Fool contributor Rick Munarriz loves to look back, even if it means he falls on his face going forward. He does not own shares in any of the companies mentioned in this story. The Foo l has a disclosure policy. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
