You will be redirected back to your article in seconds

Wherehouse inks deal to CheckOut the Web

Music Co. to invest $20 mil in e-tailer, will make it official

Wherehouse Music said Tuesday it will invest $20 million in music, games and video e-tailer CheckOut.com in a move to replace its current e-commerce Web site.

CheckOut.com, launched by the Yucaipa Cos.’ Richard Wolpert and Michael Ovitz in August, will also pour $20 million into its own site to become Wherehouse’s official online seller of music and other merchandise.

Wherehouse will integrate CheckOut.com’s services throughout its 600 stores using kiosks that will enable consumers to preorder merchandise or purchase products that are out of stock. CheckOut.com will now also begin selling used music CDs throught the deal.

Wherehouse will begin incorporating CheckOut.com in its national advertising and in-store displays before the Christmas shopping season.

CheckOut.com will add WherehouseMusic.com’s “Lounge” to its site, a feature that includes live weekly Webcasts of musicians such as Ice T, Melissa Etheridge and the Moody Blues.

The deal reflects the trend of e-tailers who are expanding from the Web into partnerships with traditional brick-and-mortar retailers, hoping to attract more traffic to its Web addresses.

Wherehouse is expected to fold its Internet team together with CheckOut.com, creating a Web venture of over 100 employees.

“The partnership gives CheckOut.com an off-line presence with a leading entertainment retailer and access to Wherehouse Music’s several million customers per month, which we see as a key differentiation for our branding and customer acquisition strategy,” said Wolpert, CEO of CheckOut.com.

Wherehouse Music chairman and CEO Tony Alvarez said the deal will enable the company to focus more on its stores, rather than on the Web.

“Partnering with CheckOut.com allows us to concentrate on what we do best,” he explained. “For brick and mortar stores, the Internet cannot be a hobby.”

Since its launch, CheckOut.com has been scrambling to ink partnerships with retailers and other e-tailers to generate sales. The Wherehouse deal will now make it easier for the company to lure music artists and record labels to participate in promotions to its storefront.

The nonexclusive partnership allows CheckOut.com to form a similar relationship with another retailer, although execs from both companies said they would seriously question whether to partner with another entertainment retailer.

More Digital

  • Google Placeholder

    Google Accelerates Google+ Shutdown Following New Privacy Mishap

    Google will shutter its struggling social network Google+ sooner than previously announced: The company said Monday that Google+ will shut down in April of 2019. It also disclosed a new security vulnerability that briefly exposed personal data of some 52.5 million Google+ users. The bug, which was introduced to Google+ in November, allowed developers to [...]

  • Eddie Lazarus Sonos

    Sonos Hires Tribune General Counsel Eddie Lazarus as Chief Legal Officer

    Smart speaker maker Sonos has hired former Tribune exec Eddie Lazarus as its new chief legal officer. Lazarus will be in charge of all legal, regulatory, compliance and SEC reporting issues, among other things. Prior to joining Sonos, Lazarus worked as general counsel and chief strategy officer for Tribune Media. Before that, he was chief of [...]

  • Rhapsody, Sony Music to Launch Spotify

    Rhapsody, Sony Music to Launch Spotify Competitor in Japan

    Rhapsody and Sony Music Entertainment today announced a partnership to launch what they describe as the first on-demand, high-resolution streaming music service in Japan. Rhapsody International is providing its “Powered by Napster” platform including a set of systems, tools and APIs to allow SMEJ to quickly launch and bring its on-demand service to market. The service, [...]

  • Vidcon Sarah Tortoreti

    VidCon Has a New Marketing Chief: Nickelodeon's Sarah Tortoreti

    VidCon tapped Sarah Tortoreti as VP of marketing to head up the digital-creator and video confab’s promotional strategies worldwide. Tortoreti joins VidCon from Viacom’s Nickelodeon, where she was director of marketing and brand strategy since April 2016. In early 2018 Viacom acquired VidCon, founded by veteran YouTube creators Hank Green and John Green. In the newly [...]

  • Julie Henderson - Snap

    Snap Taps 21st Century Fox's Julie Henderson as Communications Chief

    Fox PR veteran Julie Henderson has been named chief communications officer of Snap, parent company of social-messaging and media app Snapchat. Henderson, who is currently EVP and chief communications officer for 21st Century Fox, will report to Snap CEO Evan Spiegel. Henderson is set to start at Snap immediately after the completion of the sale [...]


    'The Umbrella Academy' Superheroes Series Premiere Date Set on Netflix

    The dysfunctional-family superheroes of “The Umbrella Academy” are landing on Netflix worldwide on Feb. 15, 2019. The live-action series is based on the “Umbrella Academy” comic books created and written by Gerard Way and illustrated by Gabriel Bá, published by Dark Horse Comics. The Netflix original series comprises 10 one-hour episodes. “The Umbrella Academy” stars [...]

More From Our Brands

Access exclusive content