Ben Reid
15 Sep 2006 17:38
Wal-Mart Stores, Inc., which currently accounts for about 40% of all DVD sales in the United States, is preparing to expand into the online movie downloads category, according to CNNMoney.com.
Citing sources, CNN say that Wal-Mart is accelerating its efforts to launch a digital movie download service in the months ahead. With Amazon introducing Unbox, and Apple launching its new movie download store, the company is reportedly eager to "dive in" and protect the dominance that it's gained through the DVD market.
The retailing giant is apparently debating price models, whilst keeping an open mind on the service itself. One option Wal-Mart is considering is a free digital download of the movie along with a purchase of the DVD version at a Wal-Mart store. Another concept reportedly being considered is allowing customers purchase a download of the movie for a few extra dollars when they buy the DVD version at the store.
A report issued late last year stated Wal-Mart was also considering installing in-store kiosks where consumers could download films on to portable discs using digital technology.
Wal-Mart spokeswoman Jolanda Smith refused to confirm nor deny intentions to launch a new movie download service later this year. "Our customers want to watch movies and they want to be able to make the choice when and how they want to view them," she said in an email to CNNMoney.com. "We believe many of our customers like to touch and feel the movies in-store and receive additional benefits such as the bonus features not currently available online. We intend to meet our customers needs whether they choose to purchase movies online or in the store and will continue to work hard with all our partners to do that."
Source:
CNNMoney.Com