Wal-Mart To Launch Movie Downloads Tomorrow

Wal-Mart, who gracefully exited the DVD-by-mail race by linking to Netflix, has announced that they will be providing downloadable version of movies as an option when you buy the DVD. According to CNN, "With the purchase of the "Superman Returns" physical DVD, Wal-Mart said customers can also choose from three video download format options -- $1.97 for portable devices, $2.97 for PCs/laptops, and $3.97 for both portable players and PC/laptops."

This is especially interesting since the US Copyright Office has rejected our right to "rip" a movie and copy it to an iPod or other portable device (read the full story: Hollywood Reporter).

There are a lot of people that don't know or want to know how to rip a movie (which is illegal). What do you think of this strategy?

Thanks to John A. for sending this in.

Comments

[Edward R Murrow]

This is very cool. Since I purchase 20 titles or so per year, I can now have the same media downloaded to my video iPod for a nominal fee.

BTW, the writer of the CNN story states that "Wal-Mart's online movie rental service failed". I don't believe that Wal-Mart's online movie rental service failed; rather Wal-Mart decided that the profit margins weren't high enough compared to their other core competencies.

[md300m]

I agree, I think it's a pretty nice deal, though it'd be nicer if they didn't charge for it when you buy the dvd. They ease consumers into the download at first, then expand. As for the online service, I think we all know Walmart has the capital to drag out a rental war with Netflix and Blockbuster until they collapsed if they wanted to. But Mr Murrow was totally right, Walmart was lightyears behind Netflix and BB and would have taken a serious investment to catch up.

[Frederick Benenson]

The article is unclear regarding what format the downloadable files are in, but... assuiming (and we have absolutely no reason to do so) the downloadable files are DRM-free in order to be compatible with multiple players (iPod to PC) then one would be paying a premium on top of the DVD price for a DRM free file. This is interesting because it represents variable pricing of DRM vs. DRM-free files; something that the Korean music industry has recently tried: http://www.freedom-to-tinker.com/?p=999

If Walmart decides to encumber their movie downloads with DRM then I think they're going to be in for another rude awakening.

[type-cast]

"I don't believe that Wal-Mart's online movie rental service failed; rather Wal-Mart decided that the profit margins weren't high enough"

That's nothing but semantics. They lost tons of money and decided to quit while they were behind. Either they're failures or quitters. Take your pick. They knew the profit margins were small, but they did it any way. You say they made a strategic retreat. I'll say they didn't plan and NFLX + BBI ate their lunch.

[bobemmerich]

OK, I can see the iPod crowd paying the extra $2 to get the flick onto their iPod, but why would someone pay $3 to download the movie onto their computer if they alreay have the physical DVD? This I don't get. If you have the necessary broadband to download the movie, you likley have a DVD drive in your PC/Mac, or do these new DVDs not play on computers?