Apple vs. Walmart on movie downloads
Sunday, September 3rd, 2006An announcement made this week by Apple’s CEO that it plans to sell full length downloadable movies online is soon or later bound to spark controversy. Apple has until now been selling mp3 music though its popular site itunes and boasts of over 40% control of all mp3 players through its now famous ipod. But this week’s revelation is bound to spark a controversy between Apple and retailer chain stores like Walmart which normally sell DVDs. Walmart, the largest supermarket chain store, accounts for 40% of all the $40bn DVDs to be sold this year. As the rumour mongering goes on that itunes will make online movie downloads legal, the Hollywood has remained silent neither without an official comment nor position.
However, the question of pricing is bound to make neither Apple nor Walmart a winner, according to analysts who say that both will offer nearly the same prices. Apple will sell a single flick for $15 and $11 for old movies. While Walmart currently charges $17 for each DVD, there seems to be no clear cut price difference separating the two.