updated 11:10 am EDT, Fri September 29, 2006
Wal-Mart iTunes Coupons
Earlier this month, allegations had been made that Wal-Mart was threatening Apple because it feared full-length movie downloads on iTunes might undercut its discount DVD sales. While Wal-Mart has flatly denied these claims, Variety is reporting today that the large retailer is actively negotiating with Apple to obtain a share of profits from movie downloads. The solution may involve Wal-Mart offering virtual iTunes coupons that would allow the company to collect a small amount of revenue from video sales, according to insiders referenced in the article. While a deal may only be tentative, says Variety, it would be mutually beneficial as it would help to eliminate resistance against iTunes from major movie studios outside of the Disney network. Many of these studios have reportedly been loathe to anger Wal-Mart by supporting movie sales that would significantly undercut Wal-Mart in price and potentially close off a major distribution channel. The retailer is prepared to accept losses and match Apple's prices for key movie releases such as the Pirates of the Caribbean sequel in order to maintain its customer base, according to the article.