February 5, 2007 11:00 AM PST
Wal-Mart partners with studios in download deal
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Wal-Mart will introduce a partnership with all six major Hollywood studios to sell digital movies and television shows on its Web site.
The New York Times
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15 comments
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Endlessly putting tiny components together in a no-skill-
required factory job - I'm glad our economy isn't based on that
labor model.
Also, I wouldn't count on Walmart to do much fiddling with the prices. Yes, they're undercutting iTunes on tv show prices by a whole 3 cents. But that three cents likely comes out of *their* cut, not the studios. The studios are already upset with iTunes for holding steady on their prices and won't stand for losing a single penny that would otherwise go into their pockets. Maybe Walmart will make it up on the movie sales, but frankly if I have a choice between a DVD that will play in my DVD player now, and still will play in that same player 5 years from now versus a DRM wrapped file that very likely won't because of license changes, I'm going to go for the disc. Used. From a secondary retailer.
"If you are doing digital distribution, you are doing it because you do not want to be in the store,"
It won't work because of this:
"the price of a digital movie would be comparable to that of the DVD at its stores."
What's the value add? This?
"If you are doing digital distribution, you are doing it because you do not want to be in the store,"
I get that from Amazon, albeit with a delay. But it's extraordinarily rare that I can't wait a few days to watch a movie or TV show. In fact, I don't recall it ever happening. It's just a show, for crying out loud, not real life. Give me added value if you're going to charge me the same price and not deliver the disk (making me shoulder the disk burn and packaging expenses). How about I don't have to burn a disk, and I ***always*** own the right to re-download the movie (hard drive loss, etc)?
--mark d.
Like, they've got server-sizing troubles.
Though, I think iTunes had that trouble initally too.
For Windows Only, No Mac or NO Linux or NO Unix?
This wreaks of Microsith like burning sulfur.
When I think Wal-Mart, I think crowded, filthy stores, that are bustling with people that are wearing equally filthy clothing and drag their screaming children with them. Not to mention rude and clueless salespeople. No matter what market they enter, be it Digital Downloads this time, they have to counter the negative imagery that their brand carries with some people (i.e., me).
Coupled with their inability to cash in and realize what people want immediately (this whole download service launches now? How long has Amazon and Apple been in the download business? Wal-Mart is slow and lethargic) they stand no chance.
I'm sure their enhanced site will draw some casual buyers. Some people that will experiment. And families that download maybe one or two movies a month, but that's it. They don't understand that people download to avoid stores like theirs. They like the comfort of their homes. Wal-Mart thinks they can lure people into their stores to buy T.V. sets and PC's because people use their service? That's wishful thinking.
Think instead on the positive side. When Wal-Mart falls from the studios' good graces (at least digitally) and people resent their WMA only model, Apple can come in and rescue the studios from their own horrendous actions- albeit with a new set of rules that give Apple more power and a bigger share of the cut. Sure, the studios can work with Wal-Mart now. But surely the world's largest company cannot save them from their own bad decisions.