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Wal-Mart to Launch Online Music Store

Posted by CowboyNeal on from the soon-to-be-overcrowded-marketplaces dept.

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."

7 of 348 comments (clear)

  1. Censored. by Evanrude · · Score: 5, Interesting

    I wonder if all the songs will be censored like the CDs in the stores?

    --

    ~.Evanrude
  2. Rolling back prices... by ForestGrump · · Score: 5, Funny

    So will we be seeing them for 49 cents a song then?

    And I can print out a coupoun for a yellow happy face with the purchase of each song online-Walmart song right?

    Is the little tune they play with each commerical free download? or do I have to pay for that too?

    Can I buy online and pickup the songs on a cd in the store? That would be great!

    -Grump.

    --
    Is it true that more people vote for the winner of American Idol, than vote for the president? -Ali G.
  3. How will it make money? by paxcirca · · Score: 5, Insightful

    I'm confused as to what Walmart's impetus here is. Steve Jobs has very clearly stated that iTMS makes about squat for profit; it's just a pretty Trojan Horse to get people to buy iPods (and eventually Macs). Walmart doesn't have an MP3 player (that I'm aware) to push. Selling music to get people to buy MP3 players seems a bit more plausible than, say, selling music to get people to buy tires/clothing/cereal in Walmart stores.

    1. Re:How will it make money? by SEE · · Score: 5, Insightful

      Wal-Mart has one major thing Apple doesn't:

      Leverage.

      Wal-Mart already sells a massive volume of music. That gives them the leverage to drive down the record company cut of sales. "I think we'll have to cut our CD pre-orders if you can't bend on your cut of the download sales" is an incredibly useful threat to be able to use at the bargaining table.

      And forget just CD orders. How many of the major labels are owned by companies that sell other things retail? Sony sells electronics. Sony, Time Warner, and Vivendi Universal sell DVDs. Wal-Mart's purchasing power, as the #1 retailer in the U.S., is tremendous on those things, too.

      And if Wal-Mart can just get better "invoicing" terms than Apple gets, that can make it profitable just on the interest earned on the consumer's money between sale and paying the record company.

  4. Coming soon .... by R33MSpec · · Score: 5, Funny

    All that is left now is Microsoft's turn:

    (1) Call it MS Tunester
    (2) Bundle with new version of Media Player
    (3) Introduce Drakonian DRM
    (5) ????
    (6) Profit!


  5. And we would use it because...? by evn · · Score: 5, Insightful

    The article is pretty vague. Wal-mart is going to start an online music store to compete with other services which have been successful. Unless they can offer something darn impressive I think they'll have a hard time getting it out the door.

    Apple offers you iTunes - excellent music software that people actually want to use (just look at the number of non-US downloads for proof).

    Napster 2 offers...well, it's got plenty of name recognition - the music selection/pricing scheme is a little different and the format works on a variety of players.

    The other services (buymusic, napster, pressplay...) haven't had near the success of the iTMS. Unless walmart has some sort of killer feature that people are actually asking for they're doomed to be another smalltime player.

    what could that feature be?
    - Lossless files
    - No DRM/Regular MP3
    - Extremely cheap pricing ($.10 - $.50)
    - EVERY major artist/song represented (and more indie tracks too)
    Without one of those it's just more of the same, and there is no reason for consumers to choose walmart's startup over the much more popular ITMS or the much more established napster.

  6. Related to this... by amanpatelhotmail.com · · Score: 5, Interesting

    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
    --------------------