WalMart announced its entry into the download field at mediadownloads.walmart.com. At least, that's one of their promotional sites. WalMart enters the fray trumpeting licensure with all of the "big six" movie studios. That one feature does provide an advantage in that is allows them to offer a selection that eclipses most of the competition. There is little else that is unique about it, however. There is download software made available much like Apple's iStore, but it utilizes Microsoft's DRM piracy protection technology. That means the service won't operate over Firefox or other browsers and won't run on Zune, PSP, iPod, or computers running Mac or Linux.
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WalMart sells about 40% of the DVDs in this country and says they'll provide price protection for their products on the shelves. That means you won't see much of that to-the-bone price cutting on downloaded products. Prices will range from a couple of bucks for a TV show up to close to $20 for a film in recent DVD circulation.
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The other challenge for WalMart is their corporate policy that every product they sell should be designed to draw customers into their stores. A product designed to deliver itself to your PC isn't going to do that. Currently, Walmart spokesmen are saying that their intent to bundle a movie download with the purchase of a DVD will meet that requirement.
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- That's WalMart's answer to delivering your download to the TV screen. It seems somewhat duplicative, but they are chasing the business in a big way. Wal-Mart's online video-rental service failed to do just that, and the corporation folded up the business after a relatively brief test drive.
- Amazon's version of the video download service is called Unbox. They too are a major retailer for DVDs and see this business as complimentary. Their only marketing responsibility for the product is to drive people to their website - unlike the brick-and-mortar based WalMart.