Apple and Wal-Mart rumoured in talks over iTunes

Possible deal to put iTunes vouchers in Wal-Mart stores

2 October 2006 14:27 GMT / By Amber Maitland

Apple and Wal-Mart are reportedly holding talks about a marketing deal to put prepaid iTunes vouchers, from which the store would keep a percentage of profits, on the retailer’s shelves.

Wal-Mart put pressure on movie studios before the launch of the iTunes movie store not to sell movies through Apple, as the retailer was concerned of losing DVD sales, for which it holds a 40% share of total DVD sales in the US. It apparently succeeded at scaring off three of the big film studios: Fox, Universal, and Lionsgate.

Disney resisted, and accepted Steve Jobs mandate that movie studios license their films for around $3 less than the wholesale price that retailers like Wal-Mart are charged.

Hollywood magazine Variety, which originally published the report about a pending deal, also says that Apple is close to getting a deal from other major movie studios, but that the studios are waiting until the end of the year because a half of all DVD sales occur in the run up to Christmas.