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Wal-Mart launches digital movie download store PDF Print E-mail
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Written by asap   
Tuesday, 06 February 2007

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This movie has been brought to you by — Wal-Mart.

Wal-Mart Stores Inc. launched a "beta" version of their online movie download video store. The nation's largest retailer is using its buying power to beat the prices charged by other download services in many cases, offering films from $12.88 to $19.88 and individual TV episodes for $1.96 — 4 cents less than Apple Inc.'s iTunes store. Unlike some offerings, Wal-Mart will not rent films online.

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WHERE TO WATCH

The films can be played on a PC or transferred to Microsoft Windows Media-compatible portable digital players. The movies will not play on Apple computers or the popular iPod.

Movies bought from the Wal-Mart store also can't be burned onto a DVD, although the company said it hopes to offer the option by the end of the year.

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WHAT TO WATCH

Wal-Mart used its significant clout to launch its online store with films from all major studios. The Bentonville, Ark., retailer accounts for about 40 percent of DVD sales, and studios have been careful not to anger their largest customer.

Wal-Mart's store will sell digital versions of about 3,000 films and television episodes from all the major studios and some TV networks, including Fox Broadcasting. Wal-Mart will not initially offer content from ABC, CBS or NBC, although the company said it hopes to add shows from those networks.

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THE COMPETITION

Apple charges less for some films sold on iTunes — $12.99 when pre-ordered and during the first week of sale, or $14.99 afterward. But it only carries films from two studios, The Walt Disney Co. and Viacom Inc.'s Paramount Studios.

Most studios have resisted signing deals with iTunes in part because of Apple's desire to sell movies at one price. Studios prefer variable pricing such as Wal-Mart is offering.

Wal-Mart's online store will sell older titles starting at $7.50, compared with the $9.99 charged by iTunes.

Amazon Inc. launched its "Unbox" video rental and download store last year without films from Disney. Other online download and rental sites include Movielink, which is owned by five studios, and CinemaNow.

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