Target Joins Walmart with iTunes Concerns

Monday October 9, 2006 2:02 pm PDT by Arnold Kim

Target has joined Wal-Mart in cautioning major movie studies that digital movies could hurt retail DVD sales.

Target's letter from President Gregg Steinhafel noted that movie studio downloads were less expensive than DVDs, according to the newspaper. The letter also said that if the pricing did not become more equitable, Target would reconsider its investment in the DVD business, the paper said.

Wal-Mart was recently cited as warning Movie Studios that there could be consequences if more movie studies joined in digital movie distribution alongside Disney.

Disney's President of Home Entertainment has reportedly met with Target executives to stress that digital distribution remains a small market.

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