Wal-Mart to Launch Online Music Store
Dteyn writes "I heard on the radio today that Wal-Mart will soon be opening up an online music store to compete with the likes of Apple's iTunes and Napster. According to the radio newsguy, it's expected to be officially announced as early as next week. Looks like this 'digital music' thing is starting to catch on with the bigwigs. Finally."
I wonder if all the songs will be censored like the CDs in the stores?
~.Evanrude
Online music for Linux, maybe?
My Ass hurts.
Wal-Mart has a corporate policy of beating suppliers until they relent on pricing.
Since digital music costs fractions of a penny to duplicate, the marginal cost is less than one cent, which is where the RIAA's revenue will go once they've been strong-armed by the Wal-Mart business process.
The only way Wal-Mart will not do this is if they buy the RIAA outright and use their ownership to make up "cost" numbers.
Note that this will be "passed on to the consumer" in the form of a 1% reduction in retail prices.
Yet another music service in the works?...
Just in my inbox:
--------------------
Subject: Important MP3.com Announcement
CNET Networks, Inc announced today that it has acquired certain assets of MP3.com, Inc.
Please be advised that on Tuesday, December 2, 2003 at 12:00 PM PST the MP3.com website will no longer be accessible in its current form.
CNET Networks, Inc. plans to introduce a new MP3 music service in the near future. If you would like to receive email updates on this service, including an invitation to a special members-only preview, please sign up here.
MP3.com is not transferring your personal information to CNET Networks, Inc. or any other third party.
On behalf of all of us at MP3.com we thank you for your patronage and continued support. It has been a privilege to host one of the largest and most diverse collections of music in the world. MP3.com wishes to express its sincere thanks to each of you for making us your premier destination for music online.
Sincerely,
MP3.com
--------------------
they are very very good at putting pressure on suppliers to cut prices, because they are such a big volume seller.
They know now, that without all the distribution costs of physical media, that the 90cents / track that Apple currently pays to the RIAA, can be cut down to 50 cents or less because they know this is all just pure profit for the RIAA right now. This is all fat, Walmart knows it and they have the buyer market power to make this price cut happen.
Then they will sell those tracks to us for 60 cents, undercutting Apple, and Walmart still will make money.
This is how Walmart always does it with whatever they sell. No reason it will be any different this time.