Apple and Wal-Mart About to Rumble for Movies?

Ah the speculations of Apple’s September 12 Special Event. Could Apple be announcing its own movie download service? BusinessWeek has predicted so and is laying the field for the battle over movies between Apple and Wal-Mart. Wal-Mart? Yep, the big box chain is the largest seller of movie DVDs, accounting for about 40% of all DVD sales.

Enter Apple with its downloadable movies ala the iTunes Music/Movie Store. Would consumers rather buy a movie on-line or go to Wal-Mart for a packaged disc? Wal-Mart doesn’t want to find out and is using its muscle to dissuade movie studios from distributing their movies on Apple’s movie service. Rumors have Apple charging $15 for new movies and $10 for older flicks. Right now, Wal-Mart averages $17 for a new title and is threatening to stop selling DVDs from studios if they don’t lower their prices. Also, Wal-Mart is supposedly readying its own download service to have a one-two punch of letting Wal-Mart shoppers buy DVD movies or download them.

To counter Wal-Mart’s offensive, Steve Jobs is reported to have called Wal-Mart executives to remind them that iPods and Macs are popular sellers at Wal-Mart stores, and it would be a shame if that channel went dry.

Let the rumble begin!

Technorati Tags: Apple