Wal-Mart Threatened by iTunes Movies? [Updated]
The New York Post reports that Wal-Mart is warning Hollywood studios against partnering with Apple's iTunes Store for movie distribution.
According to studio executives, "Wal-Mart has overtly threatened to retaliate if [studios] go into business with Apple."
While Apple has only signed one movie studio (Disney) to the iTunes store, the early success has caught the attention of other studios. One executive is quoted as saying "We all want to be in the Apple business".
The threat of Wal-Mart repurcussions, however, may temper iTunes partnerships as Wal-Mart controls a large portion of the retail market for DVDs.
Update: This Reuters story claims that Wal-Mart has said it is not trying to dissuade movie studios from working with Apple's iTunes service.
According to studio executives, "Wal-Mart has overtly threatened to retaliate if [studios] go into business with Apple."
While Apple has only signed one movie studio (Disney) to the iTunes store, the early success has caught the attention of other studios. One executive is quoted as saying "We all want to be in the Apple business".
The threat of Wal-Mart repurcussions, however, may temper iTunes partnerships as Wal-Mart controls a large portion of the retail market for DVDs.
The situation between [Wal-Mart] and Hollywood has gotten so heated and so high-level that Jobs recently phoned Wal-Mart CEO Lee Scott to ask him to moderate his stance, according to a source.
Update: This Reuters story claims that Wal-Mart has said it is not trying to dissuade movie studios from working with Apple's iTunes service.
"The Post story appears to be a rehashing of the misinformation that's been printed previously," a Wal-Mart spokeswoman said in a statement.
Top Rated Comments
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70 months ago
Last I checked this kind of anti-competitive action was illegal under monopoly laws...
70 months ago
Screw Wal-mart! They should shrivel up and die. I grew up in the epicenter of Wal-Mart's birthplace and it is nothing more than a plague on small-town (and larger city) life.
70 months ago
ha,
they are just afraid. Well competition is a good thing. they better adapt, if not, that's their problem.
I can careless for Walmart.
they are just afraid. Well competition is a good thing. they better adapt, if not, that's their problem.
I can careless for Walmart.
70 months ago
Last I checked, Wal*Mart sells iPods (Shuffles at least), correct? So a victory in the iPod dep't is a victory for Wal*Mart....?
Okay, probably not. Still, Wal*mart could try to work out some sort of deal with Apple as well... but that's unlikely.
Poor Wal*Mart. After ol' Sam kicked the bucket, the company just hasn't been the same. Now his greedy kids are turning it into an evil empire.
-Clive
Okay, probably not. Still, Wal*mart could try to work out some sort of deal with Apple as well... but that's unlikely.
Poor Wal*Mart. After ol' Sam kicked the bucket, the company just hasn't been the same. Now his greedy kids are turning it into an evil empire.
-Clive
70 months ago
I seem to remember Wal-Mart's CEO saying in a CNBC show that his company doesn't bully vendors.....what a load.
70 months ago
Last I checked this kind of anti-competitive action was illegal under monopoly laws...
you might be right...wasn't MS hit with something similar? It's not fair for a distributor to threaten the product producer (OMG..that is bad english, but you know what i mean).
i actually think it's funny b/c the studios don't like to be told what to do by anyone. if using Apple helps distribute their products, i highly doubt they'll listen to wal-mart or anyone for that matter.
it would be interesting to know whether or not WM has specific distribution deals with studios which has language indicating the studios can't distribute.
in the end, it just looks pathetically whiny by WM to cry about this. "OH..we can't sell online so nobody else is allowed...that's not fair." blah blah boo hoo.
losers.
cheers,
Keebler
70 months ago
It's about time Wal-Mart gets burned to the ground.
I hope that this pisses off the studios royally. The sooner we shift to a purely electronic method of distribution, the better everything is.
There's no way that Wal-Mart would stop selling DVDs, and what else could they possibly do? Raise prices?
It's retarded. Wal-Mart won't lose any substantial sum of money if iTunes carries movies from all the major houses. But they will lose tons if they stop selling DVDs.
This just seems really foolish to me. They're not in a good position (for once). Granted, it could hurt the studios for a while, but people want to see movies more than they want to shop at Wal-Mart, methinks.
I hope that this pisses off the studios royally. The sooner we shift to a purely electronic method of distribution, the better everything is.
There's no way that Wal-Mart would stop selling DVDs, and what else could they possibly do? Raise prices?
It's retarded. Wal-Mart won't lose any substantial sum of money if iTunes carries movies from all the major houses. But they will lose tons if they stop selling DVDs.
This just seems really foolish to me. They're not in a good position (for once). Granted, it could hurt the studios for a while, but people want to see movies more than they want to shop at Wal-Mart, methinks.
70 months ago
It's not like they are just going to stop selling DVD's from certain studios. People who want to buy a DVD that Walmart doesn't stock will just go to Best Buy or buy them from Amazon.
I don't see how Walmart has much bargining power here without shooting themselves in the foot.
I don't see how Walmart has much bargining power here without shooting themselves in the foot.
70 months ago
Walmart wont do squat! They are just bitc*ing in fear they are gonna lose $$$. What are they gonna do? Stop selling movies from certain distributers and lose even more $$$ ????:rolleyes:
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