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Wal-Mart denies anti-Apple campaign
Wal-Mart has denied a New York Post article saying it is trying to discourage Hollywood studios from selling their movies on Apple’s iTunes Store. According the report, the retail giant has warned every major studio that it will retaliate against them if they work with Apple amid concerns that Wal-Mart’s DVD sales will suffer. “Customers want to watch movies and they want to be able to make the choice when and how they want to view them,” a Wal-Mart spokeswoman said. “While we recognize there are various current and potential providers of this service, we are not dissuading studios from conducting business with other providers.” The Post claims that a Wal-Mart executive told studios there would be “serious ramifications” if they signed with Apple. “They threatened to hurt us in terms of buying less products,” one Hollywood source said. The Post also claims Wal-Mart sent “cases and cases” of DVDs back to Disney when it heard of the studio’s deal with Apple.
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1
While I’m too lazy to read the linked NY Post article, I have to say that it doesn’t sound like much of a “threat” on Walmart’s part, even if it was true. It could just be a statement of fact: If you sell more movies on line, you will sell less in the store. Walmart will sell fewer movies if more are sold on-line, not out of spite necessarily, but just because demand will drop. Not much of a threat to the movie industry, since they’ll just be getting their money from another source. And I doubt Walmart will hurt their own profits further by refusing to carry DVDs just because the same movies are available elsewhere.
Posted by Rob E. on September 25, 2006 at 8:05 AM (PDT)
2
Good ol’ Wal-Mart…strong arm tactics and, “Hey we just want to help make a better community for you,” nonsense. If anyone thinks that Wal-Mart is concerned about giving their customers a choice—they’re dead wrong. Wal-Mart, as usual, is out to line their pockets, and will do so at any cost.
Posted by FahrenheiPod 451 on September 25, 2006 at 8:14 AM (PDT)
3
yeah, and other companies aren’t worried about maximum profit.
Posted by Jake on September 25, 2006 at 11:17 AM (PDT)
4
Americans are lazy (no ‘sidewalks’ in many places), and will stay at home to get it film if they can. I’m fortunate enough to live 5 minutes (walking distance) away from a busy town centre, which is handier than any online service could ever be.
Posted by Liam on September 26, 2006 at 8:35 AM (PDT)
5
@FahrenheiPod 451:
“Good ol’ Wal-Mart…strong arm tactics and, “Hey we just want to help make a better community for you,” nonsense. If anyone thinks that Wal-Mart is concerned about giving their customers a choice—they’re dead wrong. Wal-Mart, as usual, is out to line their pockets, and will do so at any cost.”
Yes, Wal-Mart should take lessons from Apple on how to give customers freedom to choose… Oh, wait. :p
Qal-Mart Vs. Apple: who do you root for in this one?
Posted by Chahk on September 26, 2006 at 9:17 AM (PDT)
6
If you were in Wal-Mart’s position, would you act any differently? Probably not.
But as a consumer who wants choice, I’m against Wal-mart on this one. And go ahead Wal-Mart, remove the DVDs from your shelves; I’ll just find them elsewhere anyway. It’s not like you’re the only one selling DVDs you know.
Posted by Zeuser on September 26, 2006 at 10:15 AM (PDT)
7
Well, regardless, I would say that the demographic that shops at Wal-Mart is not the type that would have the interest to download movies online.
Posted by stypert10 on September 27, 2006 at 10:43 AM (PDT)
8
that’s quite the sweeping generalization.
Posted by Jake on September 28, 2006 at 5:33 AM (PDT)