Wal-Mart has the shelfspace to make or break a new DVD release, but its attempt to take that power to the Web has just bombed. The mega-retailer quietly closed its video download store in the run-up to Christmas. So underwhelming was the service that its failure is only just getting noticed.
Leaving aside Wal-Mart’s own particular failings, this is another sign that the movie download business has been going nowhere fast. Earlier this week we reported that Apple’s iTunes store will soon be trying out a new approach, offering movies from News Corp’s 20th Century Fox studio for rental.
A second feature of the Apple/ Fox deal looks even more intriguing: besides slotting it into a DVD player, people who buy a traditional movie disk will also be able to rip a (DRM-protected) copy of the movie to their iTunes collection, then watch it on an iPod. For Apple, this is a great way to suck more content into the iTunes ecosystem from what remains the dominant channel for movie distribution. For Fox, it’s a great way to add more value to a DVD ("Watch this film on your TV and your iPod!")
This all highlights once again the lack of appeal for mainstream consumers in movie downloads. Even those who feel comfortable plugging into an online service and paying full DVD prices are left with a digital file that they’ll have difficulty transfering to the TV screen. Without significantly lower prices, it’s an idea that seems to be struggling.
