Apple may have stiff competition coming up
Several reports are suggesting that Apple's online iTunes music store may receive some heavy competition from an unlikely source -- Wal-Mart. The giant retail chain is starting to look for employees that focus on online media such as music and movies, and are familiar with competitive pricing structures. Although many have expected competitors such as Google and Amazon to release something major, Wal-Mart could become a serious threat to Apple's market share.
Earlier this month, Apple introduced an updated version of its highly successful online store to include movies. Movies from Miramax, Pixar, Touchstone and Walt Disney Studios are the first to show up on the store. Apple indicated that it is working with several other major studios to sign up with its iTunes store and the company may bring movie purchases to international customers in 2007.
Although Wal-Mart has not dismissed reports about the possibility of offering digital downloads, it has not confirmed them either. Reports however, claim that Wal-Mart said "our customers want to watch movies and they want to be able to make the choice when and how they want to view them." In all likelihood, Wal-Mart could become a big player in the online movies market if its success in the retail chain is any indication. Interestingly, Wal-Mart was left out, when several movie studios decided to offer exclusivity to iTunes for several movie releases. Suffice to say, Wal-Mart was not happy about this.
During Apple's showing of its iTunes store success, it indicated that it was the 5th of the US' top 5 music stores, online or not. Stores like Wal-Mart, Target and Amazon were in the lead, but Apple indicated that by 2007, it would take over the 4th spot held by Amazon. Wal-Mart remains at the number one spot.
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