Something Wal-Mart This Way Comes: Mega-Retailer To Offer Movie Downloads By Shane C. Buettner February 8, 2007 — Could it be that Apple, Amazon and Netflix might face their toughest competition in the movie download space from a brick and mortar retail chain? Wal-Mart is entering the movie download business with deals in place with six of Hollywood's major studios, a claim no other download site can match currently. Disney, Fox, Paramount, Sony, Universal and Warner have all signed on to sell movies and TV shows with the retailing giant.

To protect the DVD sales business of the studios price parity will exist between DVD sales prices and Wal-Mart's downloads. Downloads will cost $12.88-$19.88 day and date with the DVD release and catalog titles start at $7.50. TV shows will cost just under two bucks at $1.96.

Those quick to assert that Wal-Mart willl dominate this space as thoroughly as it does brick and mortar retail should remember this isn't the giant's first step into online video offerings. A couple of years back it tried online DVD rentals and failed, ultimately shutting down and referring its customers to Netflix. The NY Times quoted a program manager from the Yankee Group as saying of Wal-Mart that, "as much of an 800-pound gorilla as they are in retail sales, they are an 80 lb. weakling when it comes to digital distribution." Ouch, that could leave a mark.

Still, the studio support that Wal-Mart has amassed should get the attention of all of its competition, online or otherwise. As for me, I'm not really looking for quality that's equal or lower than DVD; I'm hitting the snooze button until they start offering HD downloads.