Wal-Mart ditches Online Movie Download Service

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Wal-Mart Stores Incorporated has cancelled its online video download service, which accounted for about 40% of all DVD sales, less than a year after the site went live and is most likely related to Hewlett Packard Company’s move to discontinue the technology that powered the store. According to the webpage, the service closed down a week ago. Customers who have already purchased movies can continue to watch them but will receive no refunds. In 2005 the company decided to abandon its online DVD rental service and turned it over to Netflix Incorporated. The Internet video business is changing rapidly and Wal-mart may very well re-enter it one day. Wal-Mart will continue offering physical DVDs for sale at its stores and online.

Launched in February, Wal-Mart's video download service initially included 3,000 films and television episodes for customers to buy and watch on their computers and in some cases a portable device. Wal-Mart initially offered films from $12.88 to $19.88 and individual TV episodes for $1.96 (4 cents less than the iTunes store). Wal-Mart's online store sold older titles starting at $7.50, compared with the $9.99 charged by iTunes. Videos purchased on Walmart.com could be played using the Microsoft Windows Media Player or the Wal-Mart Video Download Manager, but were limited to the computer used to download them.

#1 dandin1 on 28 Dec 2007 - 20:57

Glad to see that Walmart isn't always successfull at establishing their monopoly, or even entering new markets.

#2 Oxuyoska on 28 Dec 2007 - 21:43

Walmart had an online movie download service?

(1 reply) #3 ThaCrip on 28 Dec 2007 - 21:51

i think some of it was "prices to high" as to why they failed.

cause it says... "Wal-Mart initially offered films from $12.88 to $19.88 and individual TV episodes for $1.96 (4 cents less than the iTunes store). Wal-Mart's online store sold older titles starting at $7.50, compared with the $9.99 charged by iTunes." ...

thats TO MUCH for a "downloaded video"! ... even 7.50 is questionable especially considering it's "older titles".... cause at the 12.88 to 19.88 u can just buy the damn dvd for christ sake! ... downloaded content automatically should be no more than half the price of the store boughten dvd's if you ask me.... otherwise u might as well just buy the real dvd.

Last edited by ThaCrip on 28 Dec 2007 - 21:53

#3.1 +Shadrack on 28 Dec 2007 - 22:39

I couldn't agree more. If the middle man is cut out of the picture, why am I still paying for his pay check?

#4 Pink Floyd on 28 Dec 2007 - 22:03

if I had known about this service...

(2 replies) #5 LTD on 28 Dec 2007 - 23:29

Another iTunes Store competitor bites the dust.

#5.1 Danrarbc on 29 Dec 2007 - 07:00

Although in this case their technology partner bowed out rather than them actually giving up.

#5.2 eAi on 30 Dec 2007 - 01:58

Quote - (Danrarbc said @ #5.1)

Bit of an excuse though, if it was worth it to Walmart, they'd have either persuaded HP to continue or found someone else to provide their service.

#6 episode on 29 Dec 2007 - 14:43

I don't think 40% is correct.

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