Wal-Mart joins the movie download business

The newest kid on the new media block is...Wal-Mart?

Wal-Mart announced a deal Tuesday with six major Hollywood studios to allow video and television downloading from its web site. As in most categories, Wal-Mart is a giant in retail video sales. The company is hoping this move will help it hold on to that position on line as well.

The market for online video sales is currently dominated by Apple via its iTunes stores. But Wal-Mart's deal gives it access to more studio films than other retailers, and it promises to be competitive on pricing, despite studio pressure. Will the hipsters who are wedded to their iPods shun middle America's low-price king? Or will cheap prices and greater access to studios rule the day?

Blog community response:

"Will this service go the way of their Wal-Mart Netflix DVD rental business or will it help drive down prices for consumers while mercilessly drubbing the competition out of the market? Time will tell."
--Engadget

"This is most likely a big leap in digital distribution, not for what Wal-Mart??s service will offer, but what it opens up in terms of availability and services that follows."
--901AM

"iTunes still has the only service that works cross-platform, plays on an iPod and now on the living room television with Apple TV. And they already dominate the television download market. Walmart will not be able to easily hurt iTunes in the short term."
--TechCrunch