Wal-Mart Cuts Digital Movie Deal

February 6, 2007

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February 6, 2007

Movie studios worried about computer "pirates" are getting into the downloading business themselves. Wal-Mart has reportedly agreed with six big Hollywood studios to sell digital movies and TV shows on its Web site.

STEVE INSKEEP, host:

A few days ago NPR's MORNING EDITION told you that movie studios are more worried than ever about people downloading pirated movies on their computers. Now they're getting into that business themselves. Today's last word is business is Wal-Mart, or it that two words? Depends. It reportedly has a deal with six major Hollywood studios.

Wal-Mart will sell digital movies and TV shows on its Web site. Now in this case, size does not necessarily mean success. Wal-Mart failed before when it tried to compete in the online video rental business. They ended up surrendering to Netflix.

Even now as it prepares to offer video downloads, the giant retailer will be up against established players like Amazon.com and iTunes. But Wal-Mart hopes its deal with top Hollywood studios and low prices will give it an edge.

This is MORNING EDITION from NPR News. I'm Steve Inskeep.

RENEE MONTAGNE, host:

And I'm Renee Montagne.

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