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Wal-Mart reportedly preparing new video download service

Written by Rich Fiscus (Google+) @ 14 Jan 2008 23:03 User comments (8)

Wal-Mart reportedly preparing new video download service Despite shutting down its first attempt at a video download service in December, after less than a year of operation, Wal-Mart already appears to be working on a replacement. Unlike the previous attempt, which relied on services provided by Hewlett-Packard (HP) to deliver the video, this time the world's largest retailer looks to be striking out on their own.
No doubt the decision by Wal-Mart executives to set up their own delivery system was at least influenced by the fate of the earlier venture. The reason for making such an early exit the first time around was HP's decision to get out of the business entirely, leaving Wal-Mart without a distribution channel. HP's official statement on the matter said “the market for paid video downloads has not performed as expected, and the broader internet video space continues to remain highly dynamic and uncertain.”

That uncertainty apparently isn't as worrisome to Wal-Mart. According to Multichannel News, Microsoft representatives took advantage of last week's Consumer Electronics Show (CES) to research the technology required to provide movie downloads that can be burned onto DVD.

In addition, although the online store has been shut down, Wal-Mart has continued to supply the online licensing service required for the files' DRM to allow playback through Windows Media Player.

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8 user comments

115.1.2008 12:02

Because music worked out so well for them?

216.1.2008 10:00

Music failed for them. Their previous attempt at a video download service was as short lived as Lindsey Lohan's sobriety.

So why put themselves back out there when the competition is almost sure to blow them away?

317.1.2008 0:59

They cant compete with free.

417.1.2008 10:47

wal-mart is for redneCCs

517.1.2008 16:01

Originally posted by 7thsinger:
Music failed for them. Their previous attempt at a video download service was as short lived as Lindsey Lohan's sobriety.

So why put themselves back out there when the competition is almost sure to blow them away?
Precisely.
The profit margin is miniscule on video downloads, unless you have a subscriber base. They'll find that out soon enough.

617.1.2008 16:11

You think they'd have learned that the first time.



717.1.2008 19:19

yea i went in the wall mart near here the other day and i seen a machine that you could rent videos out of it was a dollar a day and you had to use your cc tho.

814.2.2008 21:56

Lets jump on the bandwagon again. :P

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