Wal Mart sells 40 percent of all DVDs purchased in the United States. Now isn’t that a pretty pile of change? So when movie studios began talking about allowing custmers to download movies, the flashing red lights went off in Bentonvile.
First, the Wally World executives tried a smack down (Stupid Idea No. 1), telling the studios that they had better not be thinking of selling the downloads for less than Wal Mart could (Sam forbid that a competitor might hold an advantage that would allow it to undersell Wal Mart).
Next, Wal Mart said it was rethinking Stupid Idea No. 1 and wanted to consider how it could just take over the downloading business itself. This has led to Stupid Idea No. 2.
From CNN Money:
According to sources familiar with the matter, the world’s largest retailer and seller of movie DVDs is accelerating its efforts to launch a digital movie service in the months ahead. The quickened pace comes after both Amazon (Charts) and Apple (Charts) this month unveiled their own movie download services.
Wal-Mart 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.
So the totall clueless underling in charge of this program thinks that a customer who wants to download a copy of Scary Movie 4 is going to go to Wal Mart, buy a hard copy and then download the movie or (and this is Stupid Idea No. 2 on steroids) a customer will go to Wal Mart, buy a hard copy of the movie and then pay more money for the download?
What are they smoking in Bentonvile?