Target sells 15% of the DVDs in the United States.

“Now, the company thinks it is getting a raw deal compared to certain music download services that get a better financial arrangement from the big studios,” Douglas McIntyre writes for Blogging Stocks. “The complaint seems to target Apple Computer Inc. as much as any other company. Disney Co. has recently concluded a deal with Apple to download movies for iPods. The price? $12.99 per film. This is several dollars below what DVD retailers have to charge.”

McIntyre writes, “Disney is a logical culprit in all of this. Steve Jobs sits on the Disney board and is the company’s largest individual shareholder. So, why does Apple get such a great deal on Disney content? Everyone loves a lawsuit, and, if the large retailers think they have been wronged and Disney does nothing, court might be a fun place to get it resolved. Did anyone say antitrust?”

Full article here.
Seeing as there is nothing physical, no packaging, etc. it ‘s only logical that iTunes downloads should cost less than physical media sold in places like Target.

Related articles:
Report: Apple and Wal-Mart in discussions over iTunes Store alliance – September 29, 2006
Wal-Mart: we’re not fighting iTunes Store movie downloads – September 23, 2006
Wal-Mart threatens retaliation against Hollywood studios if they sell movies via Apple’s iTunes – September 22, 2006
Wal-Mart not happy with looming threat of Apple iTunes movie downloads – August 31, 2006