August 31, 2006

Wal-Mart Trying To Stop Apple Movie Store

You've no doubt seen how Apple has reinvented itself beyond being a computer-focused company to one that also is best represented by iPod and iTunes. The iPod/iTunes brand has really become the dominant player in the online music and MP3 player market, beating Sony, Dell and a host of also-rans.

Now that rumblings are out there saying Apple will add movies to its iTunes store, Wal-Mart is trying to use its own market power to stop it before it gets started. BusinessWeek says that Wal-Mart, who represents 40% of the $17 billion DVD market, is threatening publishers, saying that if they post their titles on iTunes, Wal-Mart simply won't carry them.

BusinessWeek: Wal-Mart and Apple Battle for Turf

Part of this is because Wal-Mart is also planning an online film service, and they don't want to support companies that work with the competition. Part of it also is that they are afraid Apple will win in online movies the way they won in online music, and that they will set the rules for costs, etc. Current rumors have the store debuting in mid-September with new films at $14.99 to own, and older films at $9.99. Disney and Lions Gate Films have signed up, with more studios to come, no doubt.

With that said - should Wal-Mart act this way, or is it acting like a monopolist? What's your feeling?

Listening to ''Get Up on It Like This'', by The Chemical Brothers (Play Count: 5)

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