Wal-Mart gets into video download business

Filed in archive Announcements on February 6, 2007

Amazon.com. CinemaNow. iTunes. Wal-Mart?

Yes. Today Wal-Mart is unveiling its video download Web site; the first traditional retailer to do so. We are talking about the download-to-own market not the rental market. You may recall that Wal-Mart already botched its test with online video rentals, shutting down its DVD rental business two years ago and referring users to rival Netflix instead.

One thing that will put a wind at their back is that they have a partnership with all of the six major Hollywood studios - Walt Disney, Warner Brothers, Paramount, Sony, 20th Century Fox and Universal. On the television side, Wal-Mart is working with networks like Comedy Central, CW, FX, Logo, MTV and Nickelodeon.

Download prices will be $12.88 to $19.88 on the day of the DVD release; older movies will start at $7.50 and TV shows at $1.96 an episode. Wal-Mart said the price of a digital movie would be comparable to DVD prices at its physical stores.