We have all heard favoring voices on digital movie downloads, uptill now that retailer Wal-Mart has issued warnings of retaliation to some of Hollywood’s key players, on should they elect to sell movies through Apple’s iTunes service. According to a report from the New York Post, Wal-Mart has last year sent back “cases and cases” of DVDs to Disney after the animation company announced it would offer episodes of its hit shows “Lost” and “Desperate Housewives” on iTunes.
Hollywood studio executives say Wal-Mart will strike back if they go into business with Apple, and though the Cupertino-based company is currently offering movies exclusively from Disney studios, others in the movie industry will keep in the direction of Disney’s footsteps.
Apple’s pricing is $9.99 to $14.99, is below Wal-Mart DVD prices. Studios typically charge Wal-Mart $17.95 (wholesale) for new DVDs, but Apple is paying Disney roughly $14.50 wholesale for each movie. Hollywood studios don’t wish to upset their largest sales outlet Wal-Mart just prior to the holiday shopping season, which is expected to rake in about $5 billion in DVD sales in the fourth quarter.
Source: nypost.com
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