Target complains to studios about iTunes Store movie download prices

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

31 Comments

  1. just trying to preserve their bowl of rice. Who would buy from iTunes if the price were the same as a dvd. The studios have to sign on, or face increasing piracy. If most of them stick together there is not much the targets of the world can do. You can bet that Target leverages their possition to undercut it’s competition. How’s the shoe feel on the other foot?

  2. Target = Mediocre and Bizarro

    Best Buy = Substandard Idiocy

    Wal•Mart = White Trash Bargain Basement Craptacular

    Hey, at least they don’t play any sh-t muzak in Target. So, I vote Target.

    (Plus, the SNL Target skits are moderately funny.)

    So, yaah, Target it is.

  3. Antitrust?? Does Disney have a monopoly on movies? Does Apple aready have a monopoly on movie downloads? Do lower prices hurt consumers? Only if lower prices puts the other companies out of business a la Rockefeller so that prices can eventually go up.

  4. The iTunes movie downloads are lower quality, have no DVD extras, and to date cannot easily be played on a television, nor written to a physical DVD. What the hell does Target expect? Of course the prices are lower. Morons.

  5. So DVD retailers “have to charge” more than $12.99?

    Because why???

    Because they make more money that way. No other reason. Most DVD’s can already be purchased for much less from Amazon (and many other sources, most likely). If retailers get to cry “foul” because internet prices are lower, then we’d better dismantle the entire worldwide web this very day! Who cares about progress? Heaven forbid that Target or WalMart should make less profit!

  6. No manufacturing, inventory control, returns, theft, distirbution, or physical media to buy – plus it is “new” and therefore needs to be at a competetive price to warrant trying it.

  7. I don’t see how DVD sales are going to be hurt by the on-line movie sales. I have no intention of ever buying an on-line movie. Not enough bandwidth to supply a high quality recording and I’d much rather pay $2 – $3 more for a commercial DVD and case. It’s much easier to sort through them and not a hassle to let family and friends borrow them.

    On-line music downloads make sense but movie downloads just can’t compete with commercial DVD’s especially as we move to HD content.

  8. Target sells DVDs everywhere from $15.99 to $29.99 depending on popularity and special features. I’m not certain I see what they have to complain about.

    Apple sells just the movie—no media, no deleted scenes, no extras, nada. Besides from the extra cost of producing physical media; I’d assume the difference between $12.99 and $19.99 also have to do with extras.

    $5-$10 difference isn’t necessarily going to stop me from buying, if I want those items. Of course, it will when I don’t want those items.

    The problem is DVDs use to be much cheaper and Walmart, Target or none of the other major retailers seemed to put up much of a complaint when movie studios raised the price from $9.99 a DVD to $19.99 a DVD. But, now that one company is saying “no” to the ridiculous pricing schemes of movie studios; everyone else is up in arms.

    I’ve got to say, these people really, really hate the American Consumer. They tell us prices double or more of what they use to be, a scant 3-5 years ago are cheap; then expect us to pay more for less, just so they can keep doing business as usual. I say GROW-UP.

    When I walk into Target, and see a good, but not so popular show like Numb3rs Season 1 DVD set selling for over $50.00 (and season one was only 13 episodes), of course I’m going to head to iTunes, where I can get the episodes for $2 each. Same with movies. Even at discount stores like Target and Wal-Mart these items are just overpriced.

    Hell, as much as I love iTunes, I think the cost for movies there are slightly overpriced as well. $9.99 is a good price for movies without extras. $5.99 or $6.99 for older movies. That said, $12.99 is still reasonable, even if it qualifies as overprice.

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