Wal-Mart, Film Studios Join Up To Beat iTunes

Feb 6th, 2007 | By | Category: Digital Video Downloads, General, Video

The New York Times reports that Wal-Mart is partnering with all of the six major Hollywood studios — Walt Disney, Warner Brothers, Paramount, Sony, 20th Century Fox and Universal — to sell digital movies and television shows on its Web site, becoming the first traditional retailer to do so.

The move plunges Wal-Mart into competition with several established sites, like Amazon.com, CinemaNow and iTunes, and given the chain’s penchant for price cutting, could drive down the cost of a digital download.

Apple dominates the online music and movie industry, leaving a sliver for everyone else to fight over. However, Apple has only been able to work limited deals, primarily with Walt Disney, for its iTunes store.

Nevertheless, Wal-Mart has failed to make much of an impression in digital media.

“As much of an 800-pound gorilla as they are in retail sales, they are an 80-pound weakling when it comes to digital distribution,” said Michael Goodman, digital entertainment program manager at the Yankee Group, a consulting firm.

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  1. […] This may be the reason for other news of an attempt to unseat Apple as the kind of online media distribution. But then again, one of the players there is Disney. Hmmm. […]