Apple in Talks with Wal-Mart over Movies

Alex, Variety.com writes "If you can't beat 'em ... Apple and Wal-Mart are in discussions over an alliance that could allow the giant retailer to profit from iTunes video downloads. Apple would then gain access to titles from every major studio." From the article: "A deal could take the form of a digital download 'coupon' that would allow consumers to buy movies, TV shows or music on iTunes with Apple paying the retail giant a percentage of the proceeds, one industry insider said ... Hollywood has been closely watching Disney's relationship with Wal-Mart in the wake of the deal. When Wal-Mart caught wind of talks between the studios and Apple, it threatened to cut its order of 'High School Musical' over the summer. Disney CEO Bob Iger did the deal with Jobs anyway, and the rest of Hollywood has been watching to see if and when the other shoe drops."

Comments

Sweet deal!

[Rob T Firefly]

So, does this mean I'm entitled to part of the profits all my competitors make, on basis that they're taking money I could have made had they not had a more sucessful and up-to-date business model?

Note to self: sue everyone!

In a honest administration, Wal-Mart should worry

[nweaver]

Wal-Mart's aleged threat to cut Disney orders if Disney started selling through iTunes would, in an honest administration, be an instant anti-trust lawsuit by the Department of Justice.

Its perfectly legal and valid for Wal-Mart to squeeze its suppliers when they sell to Wal-Mart, but to threaten suppliers because they are selling through other venues, when Wal-Mart has an unquestioned monopoly in many areas, would be asking for intervention.

However, with the current DoJ completely toothless, and prefering Seattlements (eg, the Microsoft anti-trust resolution) to actually going after entrenched business interests (especially hard-core republican supporters like the Waltons), Wal-Mart doesn't need to worry.