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Wal-Mart threatened by iTunes movie downloads

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By LC Angell

Contributing Editor
Published: Thursday, August 31, 2006
News Categories: iTunes

Wal-Mart isn’t happy with Apple’s plans to sell full-length movie downloads through the iTunes Music Store, going as far as sending executives to Hollywood to dissuade studios from signing distribution deals with Apple. Wal-Mart’s campaigning has so far reportedly deterred the major studios from partnering with Apple because of the retail giant’s weight in the industry. “As the largest seller of DVDs, Wal-Mart accounts for roughly 40% of the $17 billion in DVDs that will be sold this year, a financial lifeline to big-spending studios,” reports BusinessWeek. Wal-Mart is also seeking marketing help from the studios for its own planned movie download site, and wants Hollywood to cut the current wholesale price for DVDs so it will be able to match the reported $14.99 price point that Apple is targeting for new releases. BusinessWeek says its sources point to a mid-September launch of the iTunes movie downloads.

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Comments

1

ah… one more reason to love Wal-Mart.  Thanks Wal-Mart for trying to interfere with the consumer’s ability to have more choices when it comes to purchasing movies.

Posted by dodo on August 31, 2006 at 7:26 AM (PDT)

2

So why should the studios care who’s selling their products, as long as someone is?

Posted by PhilB on August 31, 2006 at 7:56 AM (PDT)

3

Real Video IPod Coming soon….
happyness!!!
Fun!!

Posted by patico on August 31, 2006 at 8:18 AM (PDT)

4

I’m so glad we don’t have anything like that in europe. There is no corporation that is large enough to lobby on something like this, and have an actual effect.
They banned the Scissor Sisters from thier shops. Because it had, like, totally homo lyrics. And we can’t have kids listening to that, can we?  Might even turn them gay, because everyone is born straight, apparently.

Posted by Liam on August 31, 2006 at 8:45 AM (PDT)

5

Yeah, Wal-Mart should stop PMSing, I don’t buy electronics ‘cept for batteries at their store, I go to actual electronic stores to buy stuff like that. Wal-Mart, go f*ck yourself.

Posted by Kal Varnsen on August 31, 2006 at 8:51 AM (PDT)

6

Of course they would feel threatened by iTunes, why would you go to a movie theatre if you can “rent” it LEGALLY to watch at home on the same say that that the movie comes out in theatres? Most people have TVs with screens over 37 inches, and many of these people would rather watch the newest movie at home than have to deal with other people and the wildly-inflated price of popcorn.

Posted by Lemment on August 31, 2006 at 8:53 AM (PDT)

7

Why would the studios care if Wal Mart is going to lose out on sales? They’ll profit more from iTunes, because they won’t have to produce as many discs/cases, and Wal Mart won’t be taking a big chunk of the money. Apple will take some, but not nearly as much as Wal Mart.

The only negative impact I can see is the people who find a way to burn the movie more than once, and are selling them on DVD. I can’t imagine Apple selling movies without a one-burn licence.

Posted by Eric on August 31, 2006 at 9:11 AM (PDT)

8

beware the wal-martnopoly.

however, in the end, if they can get it to me cheaper…

~funkpod

yes, i hate to admit it, but i do shop at wal-mart cuz their prices kick butt and i don’t got a lot o’ money nowadays, especially since the baby decided to poop more.

Posted by funkpod on August 31, 2006 at 9:15 AM (PDT)

9

I don’t know about you, but $14.99 for a DOWNLOADED movie with lots of compression. Way too much money. I’ll stick to buying DVD’s.

Posted by Blakes Dad on August 31, 2006 at 9:39 AM (PDT)

10

Why, because they are afraid that people will get too fat & lazy even to get up to buy a DVD? There’s a place for those people already, it’s called Amazon.
Thank’s to Wal-Mart for messing with the international consumer experience.

Darn, imagine how “unhappy” they would be if what Apple’s going to sell would be even close to DVD in quality…

Posted by Bad Beaver on August 31, 2006 at 9:56 AM (PDT)

11

Wait… I’ve read some things, well from posters, and i’m not sure, do some ppl think there actually putting newly theater released movies on itunes? or are they? hmm… I have no clue.

Posted by Joey on August 31, 2006 at 10:00 AM (PDT)

12

I’d be more interested in renting a movie from iTunes than buying it..

Posted by rishio on August 31, 2006 at 11:33 AM (PDT)

13

I like this:

“ah… one more reason to love Wal-Mart.  Thanks Wal-Mart for trying to interfere with the consumer’s ability to have more choices when it comes to purchasing movies.”

Kind of like what Apple has tried to do with digital music. Stick it to ‘em Wal-Mart. Everyday low prices rule!

Posted by helmach on August 31, 2006 at 11:38 AM (PDT)

14

Which would you rather have, a DVD or a download for $14.99?  I prefer the DVD.

Unlike Apple who is trying to keep prices at a certain price (remember how many people think older songs should be cheaper than new songs at ITMS), Wal-Mart is actually trying to lower the price of a DVD.

Now, I’m not saying Wal-Mart is the most sympathetic corporation in America (they’re looking at their bottom line like every other corporation), but I do like that they wanna make things cheaper.

Downloading movies is not the future.  Buying pressed media and streaming is the future of video.

Posted by Talking Madness in Los Angeles on August 31, 2006 at 11:53 AM (PDT)

15

Ahhh…I knew if I came to this comment section I would be able to feel all the love for Wal*Mart.

Posted by Obadiah on August 31, 2006 at 1:01 PM (PDT)

16

Movie studios should be happy for iTunes, they would make a fortune off of the downloads. They only have to compress the video once, and then they can sell it for the price of a DVD. They make a killing!

Posted by Adam on August 31, 2006 at 1:01 PM (PDT)

17

Walmart sure is greedy.

Posted by Bonk on August 31, 2006 at 1:35 PM (PDT)

18

I like this:

“Everyday low prices rule!”

Moving all of America’s jobs overseas rules! 

I also like this:

“but I do like that they wanna make things cheaper.”

Gimme a break.  They don’t wanna make anything cheaper.  They just wanna make as much money off of us as they can.  As it turns out, they can do this by selling things cheaper but only because they are also buying them cheaper by importing them from abroad where they can be assembled in sweatshops.  So the cheaper comes at the price of losing American jobs and poor labor conditions abroad- but hey what do us Americans care if we can save 50 cents?

Posted by dodo on August 31, 2006 at 2:05 PM (PDT)

19

“Kind of like what Apple has tried to do with digital music”
Blame Sony before you blame Apple. Sony is a lot worse that Apple when it comes to DRM. Look at the root-kit fiasco..

Posted by Macromedia on August 31, 2006 at 3:46 PM (PDT)

20

Dodo-

Look at the back of your iPod (if you even own one) and notice that it says “assembled in China” right there in plain English.

In case you haven’t noticed Apple also wants to make money off consumers (I even noted in my original posting that Wal-Mart is looking at its bottom line like every other corporation).

Fundamentally Wal-Mart tries to keep prices down and Apple tries to push their price up.  It’s a fact.

Posted by Talking Madness in Los Angeles on August 31, 2006 at 4:10 PM (PDT)

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