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Friday, September 15, 2006

CNN Money on Wal-Mart's Digital Download Plans

CNN Money has a speculative piece about Wal-Marts plans for offering digital movie downloads, possibly later this year.

Parija Bhatnagar writes:

    Wal-Mart (Charts) currently accounts for about 40 percent of all DVD sales in the United States. By launching its own service, industry watchers say Wal-Mart can protect that DVD market dominance.

    The retailer is still apparently debating price models. One option Wal-Mart is considering is a free digital download of the movie along with a purchase of the DVD version at a Wal-Mart store. Another option is letting customers purchase a download of the movie for a few extra dollars when they buy the DVD version at the store.

    Wal-Mart would make the digital downloads available through its Web site, according to executives.

(Via the Movie Marketing Update.)