I can’t believe Wal-Mart has the audacity to ask movie studios to lower the wholesale costs of their DVDs if Apple is allowed to sell movies online. According to an article from BusinessWeek “As the largest seller of DVDs, Wal-Mart accounts for roughly 40% of the $17 billion in DVDs that will be sold this year, a financial lifeline to big-spending studios. But now Wal-Mart’s video business faces a potential threat by Steve Jobs and Apple Computer (AAPL), which in mid-September, sources tell BusinessWeek, plans to announce it will start offering movie downloads from its iTunes store.
The notion of kids running around with full-length movies on new, wider-screen iPods that Apple is expected to unveil as well is causing grief in Bentonville, according to Hollywood executives. The $312 billion a year retailer, they say, wants concessions that could include lower DVD wholesale prices. ” This is the kind of bullying that Wal-Mart has been getting away with for too long. Yes they get lower prices to the general public but this is straight blackmail. Right now Apple has only Disney studios signed on but eventually the other studios will get greedy and want their movies available as well. Then they can say “Screw you Wal-Mart , if you don’t want to sell our DVDs then don’t beyaaches” If people have to go somewhere else to buy hard copies of movies they will. Best Buy would gladly pick up any slack left by Wally World. It is about time a big player took some of the sales away from them instead of the other way around. Go get ’em Apple