September 27, 2006

Wal-Mart Plays Hardball with the Movie Studios

Filed under: Business Moves,Taxes & Government — Tom @ 7:53 am

So WallyWorld doesn’t want studios other than Disney to make their movies available on Apple’s iTunes. Disney reports that it sold $1 million worth of movies on iTunes in its first week, and projects that it can sell $50 million in its first year.

Two responses:

  1. If Wal-Mart really does cut back on its DVD libraries of any defecting studio, there’s always Target down the road, the discount racks at the video stores, and any number of catalog outlets.
  2. There’s a point at which Wal-Mart could conceivably cross over into the wrong side of a line known as “restraint of trade.” Don’t think that the Bush DOJ wouldn’t love to jump on Wal-Mart for a free-market defensible reason.

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