It'd be more appropriate to analyze Wal-Mart's movie model (responsible for ~40% of the $17B in annual DVD sales, according to this BW article) versus the category-level shift to digital movie downloads; iTunes is simply today's leading instance, but the challenge, for Wal-Mart, is at the class level.
The retail behemoth isn't happy about the iPod maker's plans to offer movie downloads through iTunes. Has Wal-Mart met its match?
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