Wal-Mart shutters its download service
By Susanne Ault -- Video Business, 12/28/2007
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DEC. 28 | After less than a year since its February bow, Wal-Mart’s movie and TV download service quietly shuttered on Dec. 21.
Wal-Mart’s Video Downloads marketplace debuted with 3,000 films and TV programs, and it was initially envisioned as a rival to video offerings on iTunes. The chain competitively sold its new theatrical movies and TV downloads starting at $12.88 and $1.96, respectively, which represented several cents less than comparable titles on Apple’s service.
But Wal-Mart’s service never evolved out of its beta-testing stage, indicating that it never met the chain’s goals to become a permanent retail fixture. However, studios were considered fans of Wal-Mart’s downloads, as all the majors offered content. In contrast, only a selection of studios offers film downloads on iTunes.
Wal-Mart soft-launched its service in November 2006 with the help of Warner Home Video. The studio offered a download of Superman Returns to anyone who purchased the film’s DVD at Wal-Mart. That initiative kick-started Warner’s ongoing push to enhance its physical media with digital content.
Studios were largely not commenting, but it appears that Wal-Mart’s download exit shouldn’t affect their own online ambitions. One studio executive said that content “will just need to be downloaded from someplace else.” Apple is said to be close to signing on 20th Century Fox and Walt Disney Studios for film rentals, marking a potential expansion of the digital business.
The decision to shutter Wal-Mart Downloads came after its technology partner, Hewlett-Packard, opted to end its support of the chain’s service, said Walmart.com spokesman Ravi Jariwala.
“HP has made a business decision to discontinue its video-download-only merchant store service, which powered the Wal-Mart Video Downloads beta service,” Jariwala said. “While the beta service is no longer available, we’ll continue to provide our customers great values in movie entertainment, both online and in stores.”
Customers are being notified that they can still view any previously purchased Wal-Mart downloads. They also are being directed to the chain’s large selection of movies on DVD, Blu-ray, HD DVD and UMD for the PlayStation Portable.