Target warns studios over movie download pricing

Target has sent a letter to movie studios expressing concern that Apple and other companies will get a better deal from the studios for digital movies than the retailer gets on wholesale DVDs. The sharply worded letter from Target President Gregg Steinhafel said the retailer didn’t object to competition but wanted “a level playing field,” and also said that if Target didn’t receive fair pricing from the studios it would reconsider its investment in the DVD business. Target accounts for about 15% of DVD sales in the U.S. The letter follows similar complaints to studios from Wal-Mart and comes just weeks after Apple added full-length movies from Disney to the iTunes Store for as little as $12.99 each.

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