Wal-Mart bullying Hollywood over iTS movie downloads?
Today's edition of 'yes they did/no they didn't' is brought to you by Wal-Mart, the New York Post and Reuters. As we knew, Wal-Mart is the largest DVD retailer (at least in America), with 40% of the market. Obviously, a player with that large of a stake in the game might not be too happy when a music download service with as much momentum as the iTunes Store announces movie downloads, and the New York Post printed a piece confirming just as much. According to the Post, Wal-Mart returned "cases and cases" of DVDs to Disney after suffering a panic attack over word of the iTS. Never one to stop at throwing product back in just one client's face, Wal-Mart then went on to throw a temper tantrum at the Hollywood studios, "overtly threatened to retaliate" by ordering fewer movies if they shook hands with the iTS. One has to wonder what happens when Wal-Mart doesn't get ice cream for desert.On the other side of this coin, however, Reuters printed comments from a Wal-Mart spokeswoman, saying "we are not dissuading studios from conducting business with other providers." Setting aside the discussion of who competition truly benefits, a Disney spokeswoman also stated she was not familiar with the NYP claims, though Reuters failed to mention whether this spokeswoman has anything to do with the shipping department.
It's a twisted web these players are weaving, and we'll (do our best to) stay on top of who's saying what.
[via Engadget]
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Today's edition of 'yes they did/no they didn't' is brought to you by Wal-Mart, the New York Post and Reuters. As we knew, Wal-Mart is the...
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I do business at Wal-Mart all the time and it never sucks. I get everything at a low price. This is particularly true of DVDs. I can buy movies for less than Gamestop sells them used. Plus, I work there part time (which doesn't pay too poorly at all after awhile), so I get them at 10% less. And if Rubbermaid or Vlasic can't meet the low prices required to sell at Wal-Mart, then they can go elsewhere and sell their products to consumers who want to pay more for the same thing.
September 26 2006 at 6:07 PM Report abuse Permalink rate up rate down ReplyDan,
I guess you also missed the story about WalMart forcing Vlasic to sell a freaking gallon of pickles for less than $3, which pretty much screwed up Vlasic. Go read about it. WalMart does indeed suck if you have to do business with them.
http://www.fastcompany.com/online/77/walmart.html
Why are they worrying about competition from iTS? The hicks that shop at WalMart certainly aren't smart enough to work a computer, much less download a movie and then figure out how to watch it. And if they do somehow figure out how to do it, they'll be constantly interrupted by all the viral activity and security updates going on in their $73 crappy PC they bought from WalMart.
September 25 2006 at 9:35 PM Report abuse Permalink rate up rate down ReplyRemember back when The Wherehouse (it was a retailer that used to sell music CDs, a disc that contained music stored in digital form) started selling used CDs. And rememebr how the CD industry retaliated by raising prices. And remember how they got in big trouble with the Feds for this? Course, that was back during the era of the U.S. two-party system, so who knows that would happen now.
September 25 2006 at 4:02 AM Report abuse Permalink rate up rate down ReplySo, Walmart would not sell Disney to spite Apple? Let's see 'em explain that loss of revenue to the shareholders ... I sure that they want to set up their own download site too, but that playing field will be level or tilted against their favor so they'll only lose. Excuse me .... can't type .... my eyes are tearing up ....
September 25 2006 at 12:29 AM Report abuse Permalink rate up rate down Reply@Dan,
I guess you missed the PBS Frontline special on Wal-Mart...They're NOT like any other company. They're bullies that force companies to do what they (Wal-Mart) wants. They've strong-armed companies many times (just ask Rubbermaid) and they stop at nothing to get what they want. Ruthless.
The Wal-Mart bashing is so tiresome. Wal-Mart is just like Apple or any other company. They have to meet the market where it is. They can forestall changes, but they can't stop them. NOTHING they do will prevent digital distribution. They might be able to slow it down for a few months, but when movie studios see how much money Disney is making with ITs, with virtually no cost overhead, they'll come around, just like the TV guys did.
I don't dislike Wal-Mart, but I believed they have reached the apex of their influence in the US, and they will be superceded by nimbler, smarter players.
This is just one of the many reasons that I don't shop at Wal-Mart. When it comes to anything, be it CDs, DVDs, clothes, groceries, whatever...I always go to Target. Wal-Mart is a corrupt, controlling super-monopoly and this is incident is just one more fan on the flames. I hope that Wal-Mart does not succeed in swaying the movie studios in their iTS decisions, because I would much rather download a movie from Apple than set foot in a Wal-Mart again.
September 24 2006 at 8:57 PM Report abuse Permalink rate up rate down ReplyWal-Mart routinely sends back overstock/deleted titles on a weekly basis. Most of the movies are drop shipped to the stores. They aren't stored in a Wal-Mart warehouse somewhere. It would be extremely hard for Wal-Mart to organize all 3000 of its stores to pull the Disney titles and ship mass quantities back just for spite. They can barely get the weekly stuff done now, and that is with 3rd party help.
While I would believe they threatened the studios, I doubt they sent anything back.
Color me awful, but as an independent retailer who has spent the past 12 years dealing with big box stores slashing prices on lines we used to carry, Iâm taking great pleasure in watching THEM chase their tails for a change.
Doesnât feel so good, now does it, Wal-Mart?
Bummer baby. Now, get over it.
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