Breaking: Wal-Mart wins Digital Movie Race
Wal-Mart has become the first online digital movie download service to score contracts with all six major movie studios: Walt Disney, Warner Brothers, Paramount, Sony, 20th Century Fox and Universal. So far Wal-Mart is to be the only online retailer to carry all six big studios.
New Movie downloads will run from $12.88 to $19.88, while older flicks start at $7.50. The bad news is that Wal-Mart have decided to give the downloads DVD pricepoints.. This is why Wal-Mart will fail. The consumer does not want to spend the same amount of money and get less (less resolution, less special features, case, art, booklet, disc).
Wal-Mart will also carry TV shows from the Viacom networks – Comedy Central, CW, FX, Logo, MTV and Nickelodeon. They will try to compete against iTunes with a $1.96 price tag per show.