Wal-Mart has launched its long- awaited internet film service, offering films from all of Hollywood's main studios, in a move that could see the retailer challenge Apple's iTunes platform for supremacy in digital downloading.
Unlike iTunes, the Wal-Mart service has the backing of Warner Bros, Walt Disney, Paramount, Sony, 20th Century Fox and Universal. More than 3,000 film titles are being made available, including new releases such as The Devil Wears Prada.
The launch comes amid mounting industry concern at slowing DVD sales growth. Selling films on DVD has long been an industry cash cow, allowing studios to win back the costs of producing and distributing their films.
But with the DVD market maturing, analysts forecast a slowdown this year, which has forced the studios to consider other forms of distribution.
The Wal-Mart launch comes weeks after Paramount became the only studio to join Disney on iTunes but it is only selling selected titles from its film library.
Other studios had avoided doing deals with iTunes primarily because of fears about upsetting DVD retailers, such as Wal-Mart and Target. - ( Financial Times service)
