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Thread: Walmart launches war on iTunes

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    Retired Moderator one1's Avatar
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    Default Walmart launches war on iTunes
    Wal-Mart Launches Online Video Store

    Walmart, in an effort to protest Apple's iTunes, fires forward with their eyes focused solely on Apple as they launched their online music store.

    Walmart will not only be selling the same songs cheaper than Apple (0.74 cents V/S Apple's 0.99 cents), but they will also be selling DRM free music to be played on every device.

    In addition to cheaper music, WalMart also will be selling cheaper movies from more sources. Most studio's do not want to deal with Apple's policies, and prefer Walmart's therefore while Apple can only carry movie titles from 2 studios, Walmart carries titles from ALL studios.

    You can read more here:

    Wal-Mart Launches Online Video Store, Retailer Takes On iTunes And Enters Market For Digital Films And TV Shows - CBS News

    (AP) Wal-Mart Stores Inc. has launched its long-awaited online movie download store, entering a market that has yet to catch on with consumers but is expected to grow rapidly.

    A "beta" version of the online video store, which debuted Tuesday, sells 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.

    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.

    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.

    Apple's pricing has also caused scuffles between studios and major retailers, including Wal-Mart and Target Corp. The retailers don't want studios to sell digital copies of films cheaper than the wholesale price of physical DVDs.

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

    Wal-Mart also 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.

    Given Wal-Mart's importance, the studios readily agreed to sell films on the retailer's new site, analysts said.

    The biggest impact of Wal-Mart's entry into the digital download business may be that it now frees studios to cut deals with other online services.

    "It gets the ball rolling finally," said Tom Adams of Adams Media Research. "Now the studios are free to pursue it as aggressively as they can without worries about what Wal-Mart is going to think."

    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.

    Unlike some offerings, Wal-Mart will not rent films online. 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.

    Wal-Mart says it doesn't expect digital sales to cannibalize its retail DVD business for many years.

    "Customers have a growing interest in downloading video content, but complementary and supplemental to buying content on DVD," Kevin Swint, Wal-Mart's divisional manager for digital media, told The Associated Press.

    "With the health of the DVD business and coming high-definition formats, that business will remain quite strong for quite a long time."

    Internet downloading is expected to generate about $4 billion in annual revenue in five years, compared with an estimated $27 billion from DVD rentals and sales, according to Adams Media Research.

    Whether Wal-Mart can translate its success on the ground to the digital domain remains to be seen.

    Wal-Mart abandoned its efforts to build an online DVD rental service in 2005 to compete with the well-established Netflix Inc.

    The retailer also faces the same challenge that confounds other online video sellers — the fact that films cannot be easily transferred from a computer to a larger TV screen.

    "The real problem is people want to watch these movies on their television set," said principal analyst Josh Bernoff of Cambridge, Mass.-based Forrester Research. "There already is an effective way to do that, which is to buy a DVD."

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    Tizocman (2008-10-31)

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    what about quality ? seems crazy but why not if they are drm free i would buy them

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    Tizocman (2008-10-31)

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    I'm curious as to whether or not they intend to only sell edited music (as this has been the case with their cd's). I'd pay apple the extra 2 dollars to have the artists original words.
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    wow thats crazy. I c walmart winning that battle. Only thing i bought frm itunes is the airhockey app.

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    I download 10 cents for a song then if I can't find it there I turn to other less secure places.

    It will be interesting to see what music they offer and as another post mentioned if it will be edited.

    Edited songs is like non-alcohol beer. Whats the point. I parents don't think their kids are hearing the edited words else where they are sadly mistaken.

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    I buy my movies from here..... cheaper than these prices... and they have a pretty good selection..... what I have seen in itunes for movies at times I head over here and get them much cheaper...

    No converting or anything.... just add them to your cart pay for them download them and then through them in itunes and sync them to your phone and thats it.....

    Download Apple iTunes Ipod Movies from Ipod Lounge

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    Quote Originally Posted by Grassmasta View Post
    I'm curious as to whether or not they intend to only sell edited music (as this has been the case with their cd's). I'd pay apple the extra 2 dollars to have the artists original words.
    Depends on the size of the WalMart you go to... the ones in Iowa (all 24hr Super Centers) sell two copies (one edited and one unedited version) of all albums with the parental advisory sticker. I highly doubt they will do anything different online.
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