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By Jennifer Netherby -- Video Business, 6/7/2007
JUNE 7 | Best Buy has reorganized its entertainment division in a move toward digital delivery.
Ballard
The company shifted its U.S. entertainment business under executive VP Shari Ballard, who also heads human resources, legal, international call centers and U.S. Web sites.
The retailer said the move is aimed at improving its ability to solve customer and business challenges as it enters the digital era.
The No. 1 consumer electronics chain is one of the Top 3 DVD retailers—along with Wal-Mart and Target—and is expected to soon add a movie download service to its current digital music offering, though it has not provided any details on its online movie delivery plans.
The reorganization announcement came days after Lionsgate CEO Jon Feltheimer disclosed in an earnings call that the indie studio had signed a digital distribution deal with Best Buy. Best Buy didn’t comment on the disclosure.
Ballard now supersedes Gary Arnold, formerly senior VP of Best Buy’s U.S. entertainment business, which includes movie, music, gaming and PC software and videogame hardware.
Industry sources didn’t expect the changes to affect Best Buy’s DVD business, in which competitors say the retailer continues to be strong. Entertainment software sales accounted for 18% of Best Buy’s revenue in fiscal 2007.
Arnold, who has secured music DVD exclusives including The Rolling Stones’ Four Flicks and The Biggest Bang releases, was named to the newly created role of senior entertainment officer. He will be charged with bringing more exclusives to the retailer.
Arnold reports to Ballard and senior VP of marketing Barry Judge. Ballard is expected to appoint someone new to head entertainment.
Ballard reports to president and chief operating officer Brian Dunn for entertainment and CEO Brad Anderson for her other duties.
Ballard joined Best Buy in 1993 as assistant store manager. She moved into human resources in 1997 and has developed a reputation for finding innovative ways to reward employees and simplify how customers deal with the company.
“She excels at motivating employees, encouraging quick-cycle experiments and building networks inside and outside the company,” Dunn said. “Her passion and willingness to experiment will be critically important as we explore how to use employee and customer insights to deliver individualized entertainment experiences for customers.”
