Wal-Mart Shoves Into Digital Video Industry
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Written By Kate Zimmermann | February 6, 2007 | Share This
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Today Wal-Mart entered the digital video business, becoming the first retailer to land distribution deals with all six major studios - Warner Brothers, Paramount, Sony, Walt Disney, Universal and Fox. Wal-Mart will sell downloadable movies and television shows from its website for roughly the same price as regular DVDs.
Though Wal-Mart’s selection may be unmatched, it’s still questionable whether they’ll succeed in the market. Writes the New York Times,
“To be considered a success, Wal-Mart’s download service will not only have to compete with strong rivals. It will have to pass the same test all services do at WalMart.com: to lure customers into Wal-Mart’s 4,000 stores, to buy groceries, electronics and clothing. Wal-Mart’s online video-rental service failed to do just that, and analysts said the digital download system could encounter the same problem.”
Om Malik echoes this sentiment,
“There are too many me-too download services out there, muddying the waters and confusing the consumers about which movie or television they can download from where, and why….In this land of confusion, it seems once again Steve Jobs will look like a messiah - a device which works with the videos you download from iTunes store. Simple - unfortunately you can’t say the same about Wal-Mart.”
Nevertheless, Wal-Mart’s Goliath approach to consumer products will make it a competitive threat to Apple, Netflix and others. Wal-Mart is reportedly working with HP to create a more user-friendly site, which could be a one-two punch next to Wal-Mart’s “everyday low prices.”
Discussion:
- WalMart Jumps Into Video Downloads (NewTeeVee)
- Wal-Mart Video Downloads for IE only (Frank Barnako)
- Wal-Mart Launches Ho Hum Video Download Service (Geeks are Sexy)
Topics: ECommerce |