Apple and Wal-Mart Partnership?

[MacRumors]

http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com)

Variety is reporting (http://www.variety.com/VR1117950940.html) that Apple and Wal-Mart are in discussions over an alliance that would ease tensions between the two companies. A previous report (http://www.macrumors.com/pages/2006/09/20060922134714.shtml) indicated that Wal-Mart had warned movie studios against working with Apple. Though Wal-mart denied (http://today.reuters.com/news/articlenews.aspx?type=domesticNews&storyid=2006-09-22T185622Z_01_WEN5836_RTRUKOC_0_US-MEDIA-WALMART-STUDIOS.xml&src=rss&rpc=22) these claims, this new article reports that three other movie studios had planned on joining in the iTunes launch as of July, but backed out due to threats from Wal-Mart.

The potential Apple/Wal-Mart deal would involve "digital download 'coupon' that would allow consumers to buy movies, TV shows or music on iTunes with Apple paying the retail giant a percentage of the proceeds".

The benefit to Apple would be the ability to gain access to movie titles from the other major studios. Regardless, with no real retaliation against Disney so far, it appears many of the other studios are close to joining iTunes:

Studio sources say the rest of the majors are very close to joining Disney in a deal with Apple but are holding off until the end of the key fourth quarter, when half of all DVD sales occur.

[mmzplanet]

Fine with me.... another way for iTunes to gain business.

[gugy]

from hate to love!:)

[840quadra]

I guess this is good for settling the lawsuit. However I don't like the iidea of Wal Mart having ANYTHING to do with Apple!

::EDIT::
There is no Lawsuit between these companies. I am confusing this with an other Apple related story!

I am looking to consult a doctor about this problem! :D

[Unorthodox]

Eww yuck! http://www.prieteni.com/layout/images/emoticons/vomit.gif

[FoxyKaye]

I guess this is good for settling the lawsuit. However I don't like the iidea of Wal Mart having ANYTHING to do with Apple!
An unholy alliance indeed. Sorta like the Jedi teaming up with the Sith.

[andiwm2003]

...this new article reports that three other movie studies had planned on joining in the iTunes launch as of July, but backed out due to threats from Wal-Mart....

remind me please, what are anti trust laws for?

[zwida]

I guess this is good for settling the lawsuit. However I don't like the iidea of Wal Mart having ANYTHING to do with Apple!

What lawsuit?

Did I miss something?

[baleensavage]

remind me please, what are anti trust laws for?
Antitrust? What's that? Isn't that some archaic governmental idea that keeps companies from using bullying tactics to prevent competiton? ;)

[kwajo.com]

this is horrible. Since Wal-Mart's threat to studios was basically a monopolistic practice, Apple is basically negotiating to allow a Monopoly to be not only legitimized, but compensated for being unethical? Great...:rolleyes:

[FoxyKaye]

Antitrust? What's that? Isn't that some archaic governmental idea that keeps companies from using bullying tactics to prevent competiton? ;)
Look over there - it's new Xeon Mac Pros! New iPods! And, oh my goodness, a G5 PowerBook!

[arn]

What lawsuit?

Did I miss something?

there's no lawsuit. quadra was mistaken.

arn

[p0intblank]

Whatever brings in more business to iTunes... :) Hey, it works!

[Doctor Q]

Is this one of those "keep your friends close, and your enemies closer" cases?

Or would they make good partners?

[840quadra]

there's no lawsuit. quadra was mistaken.

arn

Correct, I have my wires crossed again..

The issue was that Wal Mart was threatening Movie studios, not Apple with a lawsuit.

I have been reading Macrumors and Digg more than I should have today and am getting stories confused.

I think I need to see a Doctor!

[canolapop]

somebady should firebomb all walmart. However, the comment about it like the jedi hooking up with the sith, i don't quite agree with. we are all biased bc we love apple, however given the chance to be as huge as walmart, apple would take it in a minute. that is any capitalists goal.. infinite growth, infinite power, infinite profit. this is the basis for capitalism, walmart just happens to be a very successful example. so lets not be hypocrictical thats why apple might consider this autrocious move... they understand the capitalist game. sad as it all may be...

[MinioN8]

Umm... so Walmart doesn't make any movies, they just threaten NOT to distribute DVDs from major studios if they buddy-up with Apple - Isn't this corporate extortion?

[mdntcallr]

umm whatever. if walmart sells movie coupons at a discount once in a while, no problem. hell walmart can even sell mac software and mac's.

i just want them to stop blocking the movie studios.

which doesnt sound right to me, cause warners and universal already have deals for movies with alternate online stores.

[ziwi]

Blue light special? Oh, that is K-Mart....Walmart will be rolling back the prices ;)
Whatever gets the population fully plugged in...

[mcarnes]

I don't think Apple should back down to those dic*heads. Apple isn't doing anything wrong, Walmart is. Apple did the same thing with Creative. $100 mil, bah.

[bdj21ya]

somebady should firebomb all walmart. However, the comment about it like the jedi hooking up with the sith, i don't quite agree with. we are all biased bc we love apple, however given the chance to be as huge as walmart, apple would take it in a minute. that is any capitalists goal.. infinite growth, infinite power, infinite profit. this is the basis for capitalism, walmart just happens to be a very successful example. so lets not be hypocrictical thats why apple might consider this autrocious move... they understand the capitalist game. sad as it all may be...

Actually it brings me quite a bit of joy. Living in a capitalist society is one of the things that really makes me want to get out of bed in the morning.

[dernhelm]

Umm... so Walmart doesn't make any movies, they just threaten NOT to distribute DVDs from major studios if they buddy-up with Apple - Isn't this corporate extortion?

Yup. Welcome to planet Earth post 19th century.

[extraextra]

Wal-mart doesn't even deserve to be in business. I hope Apple doesn't do this.

Target is way better.

[bluefido]

Actually it brings me quite a bit of joy. Living in a capitalist society is one of the things that really makes me want to get out of bed in the morning.

Ha...asking to get flamed. But I have to say...I wholeheartedly agree with you.

In defense of Wal-Mart...(please don't flame me. I actually vote Democrat):
http://www.washingtonpost.com/wp-dyn/content/article/2006/09/13/AR2006091301573.html

[samwyn]

Wal-mart represents everything that is wrong with this country. I have always thought of apple as a company supported by pot-smoking liberals who hate wal-mart. If apple teams up with them, it would be a sad sad day...

[KingYaba]

I support Apple and I am in no way a pot smoking liberal. :D

[Archmagination]

Isn't this just an extension of those Itunes Music download cards you can buy at Walmart right now? I don't think its too bad of an idea if it stops Walmart from impeding Apple.. as long as its at least a break even proposition for Apple.

[g4cubed]

I support Apple and I am in no way a pot smoking liberal. :D
So I take it you're a medical marijuana bashing conservative. ;)

[skunk]

I support Apple and I am in no way a pot smoking liberal. :DYou're a pot-smoking libertarian then? :)

[yellow]

Talk about getting in bed with the Devil..

[jamesi]

eh, i would prefer is apple would give them the finger and just challenge the giant. apple could cut alot of wal marts profits, heck the movement is going towards all media being sent directly to your tv/comp at home anyways

[Reaver]

I saw a story about wal-mart and how they drop there prices slo low and after that I refuse to buy or show from that company.

I wont even go in the store with friends when they go there.

[cherrypop]

I hate WalMart as much as the next child laborer, but this is good for both parties.

WalMart can have Apple design a Christian-safe iTunes Store front with WalMart branding and Apple will have access to millions of shoppers.

--
http://www.apple-project.com

[iJawn108]

The title of this thread sent shivers down my back. But don't they allready have that lots of places? I know I can go to many stores and buy itunes cards and get music via those.

[sonnys]

This is sooo ridiculous.

What is WalMart gonna do, stop selling DVDs? What can they possibly threaten the studios with -- that they won't sell the #1 box office smash and shoot themselves in the foot because of potential competition from Apple?

This is such media garbage. And to think that Apple would give a percentage of proceeds to WalMart FOR WHAT? WalMart is no threat to Apple cutting deals with studios... WalMart would have to threaten every studio out there, and in the process get out of the DVD sales business just to spite Apple. Makes no sense. Movie studios, if at all hurt by anything WalMart could (but most likely wouldn't) do would more than recoup by selling through Apple.

Come on people, use your brains.

[Rocketman]

It is interesting to review the known facts.

Wal-Mart DID threaten the studios.
The studios DID withhold participation in iTumes movie premiere.

Wal-Mart threatened Apple (via studios)
Apple offers concessions to Wal-Mart.
Given the hegemony of Wal-Mart, is this Apple not wanting to review the Microsoft battle from the 80's?

Notably Microsoft wanted Apple to become the default platform and Apple "did not believe them". That was a mistake grande.

The studios, having seen no Wal-Mart reprocussions against Disney, (which the FTC would likely take issue with), are putting a toe in the water. That will accelerate. Does Apple even have the bandwidth capacity to serve all that data? Comment please.

There is a competitive service that allows download to DVD on the assumption there are more DVD users than iPod users. That model has one little limitation, It requires an entire COMPUTER to use!! Just like iTunes. . .

What's with NFL? Are they whining because Apple dopes NOT offer ads? I predict Apple will offer ads on or affiliated with iTunes (Google CEO on Apple board) and this issue will go away.

Rocketman

[iMikeT]

Better Apple/Wal-Mart than Apple/Microsoft.

[Old Smuggler]

i removed my comment for fear of mine and my familys lives

[intlplby]

Wal-Mart is not a monopoly it is a monopsony.....

yes, there should be an anti-trust case brought against Wal-Mart.

The cause of Wal-Mart's ability to grow unhindered is the Reagan administration. Since then anti-trust cases just don't occur with the same frequency. The irony is that Wal-mart has brought anti-trust suits against several other companies in the past 10 years

[artifex]

Replace "Wal-Mart" with "Teamsters" or "Mafia" and see how it reads.
You wanna do business? Sammy wants his cut.

[artifex]

Wal-Mart is not a monopoly it is a monopsony.....


Wrong. It's got elements of both. It's monopsonistic from the point of view of the vendors, but monopolistic from the point of view of the customers.

[hayesk]

It is interesting to review the known facts.

Wal-Mart DID threaten the studios.
The studios DID withhold participation in iTumes movie premiere.



Uhm... it is not a known fact that Wal-Mart DID threaten the studios. Everything is rumor, with the exception of non-Disney studios in the iTunes premiere.

[plinkoman]

This is probably why they threatened the studios in the first place; so they could get a piece of the apple's pie (forgive the pun). They didn't want to scare the studios into not signing with iTunes, they wanted to scare apple into making a sweet little arrangement (for walmart) like this.

If online movies flop, walmart profits; if online movies succeed, walmart profits. lovely :rolleyes:

walmart is the new microsoft in my book. :cool:

[squirrellydw]

Maybe Apple can back out of the deal later when everyone is downloading the movies

[it5five]

EW! Ughhhh. Apple should have been fighting the Wal-Mart threats, not caving in. There is no reason for Apple to do this at all. This is pretty much Wal-Mart demanding "tribute" from Apple for other studios to sign on.

I don't plan on purchasing any movies that come from this unholy alliance.

Better Apple/Wal-Mart than Apple/Microsoft.

No. It isn't.

[twoodcc]

this sounds like good news to me.* lookin forward to it

[mahonmeister]

Only if they put a big, fat, white Apple logo in place of the star between "Wal" and "Mart" will this be a good thing. Wait, screw that.

[David Crellen]

What does Apple get out of this other than keep Wal-Mart off its back. What is a "digital coupon" worth to an Apple customer? Can it be redeemed for a bag of popcorn at Wal-Mart?

[intlplby]

this is fine by me as long as within one or two years Apple has no more obligations to pay wal-mart.....

i.e. they agree to play along with wal-mart now to get what they want, but once they can legitimately compete with walmart for sales they toss off the shackles

[joeboy_45101]

Eww yuck! http://www.prieteni.com/layout/images/emoticons/vomit.gif

I know. Hey try this out; try saying "Wal-Mart" without sounding hick. It's fun because it can't be done. Everytime you try and say "Wal-Mart" it just comes out sounding super hick. :p

[mashny]

Apple, in effect, is paying Wal-Mart for the "privilege" of being allowed to carry on its daily business. I don't see any other way of looking at the situation.

[SirOmega]

Replace "Wal-Mart" with "Teamsters" or "Mafia" and see how it reads.
You wanna do business? Sammy wants his cut.
This is exactly what I thought.

It would have been ballsy of the studios to get together and have them all tell WM to shove it up their ass. Let the DVD racks go bare. Its not like the same people wont go over to BB, CC, whatever and buy them there. Except for the impulse market, the movie studios wouldnt have lost much, and WM would have lost more on the impulse buys folks make when they come in to buy the newest release. WM had more to lose than the studios, yet the studios caved first. Bunch of wimps.

[Reverend Wally]

Wal-mart doesn't even deserve to be in business. I hope Apple doesn't do this.

Target is way better.

Except maybe for the fact that WalMart is a US company, and Target is a French company, also anti-community, anti-Christian, and generally hey employ a bunch of stupid morons to work for them, plus security guards that look either obese or anemic and could be flattened by striking them with a feather duster.

Disclaimer: I am not saying that the WalMart company is comprised of angels, just that Target is a foreign owned company here in the US and should be horse whipped.

BTW .... Yes .... I don't care for Target....just in case you haven't figured that out.
:D

[skunk]

Except maybe for the fact that WalMart is a US company, and Target is a French company, also anti-community, anti-ChristianClearly they are Devil's Spawn.

[wnurse]

I don't think Apple should back down to those dic*heads. Apple isn't doing anything wrong, Walmart is. Apple did the same thing with Creative. $100 mil, bah.

Wal Mart is not creative. Movie studios would definetly not cross walmart just so that they can provide apple with movies to give to their customers at inferior quality. 100 million is a rounding error to walmart. It would probably cost the heirs of walmart to count 100 million (it's too little). Actually, walmat probably makes as much money per month that apple does yearly (just kidding, don't firebomb me).

[wnurse]

Apple, in effect, is paying Wal-Mart for the "privilege" of being allowed to carry on its daily business. I don't see any other way of looking at the situation.

Well lets not have the kettle call the pot black shall we?. The ipod/itunes is a monopoly. Walmart has a monopoly in sales. Just two monopolies getting along.

Personally, i believe power is useless unless exercised. Walmart flexed its muscles and apple acknowledged who's the boss in this area. I hope your memories are not too short to remember how many times apple flexed it's muscles with itunes/ipod. Microsoft flexes it's muscles with Windows, Exxon with oil and if you really want to get grandiose, the US vis a vis Iraq (being the only superpower left, that's a monopoly).

[wnurse]

eh, i would prefer is apple would give them the finger and just challenge the giant. apple could cut alot of wal marts profits, heck the movement is going towards all media being sent directly to your tv/comp at home anyways

When did this movement happen?.. more precisely, where was i when this movement happened?. Oh you mean Cable/Statelitte?.. you surely don't mean computer do you?.

[joemama]

Maybe Apple can back out of the deal later when everyone is downloading the movies

Not if they have a signed contract.

But here is the thing - What on EARTH does Apple gain from this? Time and technology are on Jobs' side. Once studio execs see how well the sales of downloaded movies are going they will tell Walmart to shove it.

Remember - studios can sign deals with whoever they want to. Walmart can be cut out at any point.

The only reason I see Apple doing this is so Walmart doesn't align with Microsoft and their Zune. MS is coming late to the market, but let's not forget what they did to Netscape with IE.

[zwida]

which doesnt sound right to me, cause warners and universal already have deals for movies with alternate online stores.

Yeah, I'd guess that IF they're exerting this kind of pressure, it's leveled at studios considering ANY online distribution.

Frankly, if Walmart is coming to some terms with Apple (or vice versa) it can only be a net benefit for Apple. I'd guess that there's a decent percentage of Walmart shoppers not yet on the iTunes/iPod bandwagon who might start buying if they're exposed to the product through Walmart.

I'm no fan of mega-retailers, but I don't think Apple should be faulted for partnering with as many of them as possible.

[macnews]

Replace "Wal-Mart" with "Teamsters" or "Mafia" and see how it reads.
You wanna do business? Sammy wants his cut.

At least I am not the only one seeing this for what it is:

EXTORSION!

Granted, the idea of a coupon, pre-paid or gift card (essientially what we are talking about here) is not new and certainly not extorsion. However, if you are compelled to over such an item or suffer the consquences of not having inventory - how is this different from the "protection" "offered" by the mafia?

It is simply extorsion and I can not believe it is happening. For those who say it is capitalism, no, try again. It is corupt capitalism. I am all for free markets and letting the market take care of itself. The problem is other forces that interfere with the market (read: gov't) and thus it can't correct itself naturally.

[Compufix]

from hate to love!:)

Keep your friends close, and your enemies closer 8-)...maybe we will start to see Apple Hardware in Wal-Mart.

-Compufix

[mashny]

Except maybe for the fact that WalMart is a US company, and Target is a French company, also anti-community, anti-Christian, and generally hey employ a bunch of stupid morons to work for them, plus security guards that look either obese or anemic and could be flattened by striking them with a feather duster.

Disclaimer: I am not saying that the WalMart company is comprised of angels, just that Target is a foreign owned company here in the US and should be horse whipped.

BTW .... Yes .... I don't care for Target....just in case you haven't figured that out.
:D

If you are so concerned about Target's being "anti-community, anti-Christian..." you need to take a better look at how Wal-Mart decimates communities, receives staggering tax credits to the detriment of local business and government, crushes any hope for fair wages, violates the supposed American ideal of fair business practices (the essence of this thread)...

Here are a few links:

http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2004/08/03/BUGH081LMP1.DTL&type=printable
http://www.nwanews.com/story.php?paper=adg&section=News&storyid=135292
http://www.thenation.com/doc/20031208/levine
http://khon.com/khon/display.cfm?storyID=8575&sid=1152

Just because a company is based in America doesn't mean it adheres to fair business practices. As a matter of fact, Wal-Mart probably treats its employees worse than most companies operating in the Unites States.

In these days of multinational corporations, there is no such thing as a purely "US company." Chances are the car you drive, the toaster you use, and the television you watch has parts that were made in one country from materials mined in a second country by a company based in a third country before being shipped and sold here in the United States. Wal-Mart itself operates in many countries, making it a foreign company in most of the world.

Before you bash a company for being "foreign," please do your reseach: there's a chasm between sound reasoning and jingoism.

mashny

[QuarterSwede]

Except maybe for the fact that WalMart is a US company, and Target is a French company, also anti-community, anti-Christian, and generally hey employ a bunch of stupid morons to work for them, plus security guards that look either obese or anemic and could be flattened by striking them with a feather duster.

Disclaimer: I am not saying that the WalMart company is comprised of angels, just that Target is a foreign owned company here in the US and should be horse whipped.

BTW .... Yes .... I don't care for Target....just in case you haven't figured that out.
:D
You do realize that most of the people who make money off of Target are not foreign? The CEO isn't even French and most of the employees are American, not to mention the shareholders. I seriously hope you would rather shop at Target than at Walmart simply for the fact that it isn't crowded and you can actually find things.

Anit-Community!? They give millions of dollars away each year to communities specifically. They even encourage their employees to give to the United Way.

Oh wait, one more thing, Target ISN'T French owned (http://www.snopes.com/politics/military/target.asp)! I'm so sick of hearing that lie. Try doing some research before you believe something next time.

The Target Corporation is a publicly held, U.S.-based firm which has been headquartered in Minneapolis, Minnesota, since it began as the Dayton Dry Goods Company in 1902. Target is not now, nor has it ever been, foreign-owned. (A French-based financial institution, AXA, holds about 42 million shares of Target stock, but that holding constitutes less than 5% of Target Corporation's outstanding shares.)

As for Apple and Wal*mart, that's pretty low on ethics. Nice one Walmart, why don't you provide decent benefits and wages for your employees now not to mention decent management.

[crayzd]

It is interesting that a company, such as Apple, which attempts to be socially responsible would ever fathom a partnership with an unethical and immoral company such as Wal-Mart. I certainly hope this is not the case; I have to say I would reconsider any loyalties that I have to Apple if they began any partnership with Wal-Mart. Sometimes social responsibility must speak louder than dollars; and, in turn, social responsibility can bring the best in the long term. I hope this is only a rumor and does not materialize into anything. :confused:

[chatin]

It is interesting that a company, such as Apple, which attempts to be socially responsible would ever fathom a partnership with an unethical and immoral company such as Wal-Mart.

Good to extend a hand to a backward company that few Apple customers would care to shop at.

[Clydefrog]

eww walmart:(

[kondspi]

Wal-Mart offers a one hour warranty on their goldfish, whereas Apple offers a 30-day warranty on everything.
These companies have very different policies and would make odd partners. I wouldn't encourage their partnership.

[ClimbingTheLog]

Look at it this way - if somebody buys one movie download coupon at Wal*Mart, goes home, fires up iTunes, types in the code, downloads the movie, and then ever thinks again that he needs to go back to Wal*Mart for another iTunes movie - this is good for Apple; this guy isn't bright enough to get onto iTunes without the coupon in the first place.

99.7% of the people will never buy a second Wal*Mart/iTunes movie coupon. So, no harm no foul.

What it could do is offer a good number of in-store 'gift-certificate' type sales to Apple that would have otherwise gone into a singing wall-mounted fish.

I don't see any downsides here for Apple, other than moral disappointment from its customers who see themselves as elite.

[astral]

Disclaimer: I am not saying that the WalMart company is comprised of angels, just that Target is a foreign owned company here in the US and should be horse whipped.


I know it has already been pointed out that Target is based out of Minneapolis, the capital of France, but the whole "American-owned" company stuff is BS. Like when Budweiser ran those ads showing working class people while George Clooney talked about how AB was the only American-owned Macrobrewery. When Miller merged with a South African company, it's not like all of a sudden they stopped paying their American employees or contributing to the American economy. Who cares whether August Busch or a South African is the one getting rich? They're creating jobs and paying taxes to America. Ask people in one of the many towns in the US where Honda or Toyota provide most of the jobs whether it is more patriotic to buy and American-built, Japanese owned car or a hencho en Mexico GM car?

And on topic, yes, this deal is good for Apple, for exactly the reasons in the post directly above this one.

[Choppaface]

Walmart should be wiped off the face of this earth and the half the family's funds should be nationalized.

It's not just that there are so many informal studies done showing how problematic the company is, UC Berkeley research shows Walmart _COSTS_ Califorian tax payers millions of dollars a year just for it to exist in California.

http://www.berkeley.edu/news/media/releases/2004/08/02_walmart.shtml

Companies that align with the Walmart brand are making serious ethical mistakes.

[jessep28]

Except maybe for the fact that WalMart is a US company, and Target is a French company, also anti-community, anti-Christian, and generally hey employ a bunch of stupid morons to work for them, plus security guards that look either obese or anemic and could be flattened by striking them with a feather duster.

Disclaimer: I am not saying that the WalMart company is comprised of angels, just that Target is a foreign owned company here in the US and should be horse whipped.

BTW .... Yes .... I don't care for Target....just in case you haven't figured that out.
:D

Target is not a French corporation - that is a myth. It has been headquarted in Minneapolis, Minnesota since day 1.

Also it's shares are publicly traded here in the US. I guess that makes it and thousands of other companies, including Wal-Mart French too following the same logic.

[jessep28]

On Wal-Mart, I hardly shop there. Target is usually a more pleasent shopping experience and it's always empty compared to Wal-Mart :) .

However, as a company they are truely amazing. When you look at how their operation, information and distribution systems work and are integrated you cannot be but awestruck.

They also have a mass of information on purchasing habits which translates into product placement at their stores. When a hurricane is about to hit, they know to ship maundane products like Pop-Tarts to possibly affected locations becuase people snap them up.

Target has similar programs I'm sure, but they are nothing on the scale and complexity of Wal-Mart.

[awhitaker]

I would guess that the majority of CD and DVD sales in the US happen inside WalMarts. It doesn't surprise me then that WalMart has the upperhand in bullying music and movie studios. I'm sure they have some deal with Apple regarding iTunes and now they have a deal with Apple regarding movie downloads. iTunes probably didn't seem much of a threat four years ago to WalMart but now I'm sure iTunes is cutting into some of WalMarts CD sales. WalMart is wise to threaten movie studios which eventually lead to a deal with Apple and their movie downloads because if the movie downloads becomes a huge hit like the iTunes music downloads, then WalMart could suffer a little.

Yes I think it's wrong, it does feel like WalMart is the mafia when it comes to movies and music, but they're doing it because no one is powerful enough to stand up to them. I'm surprised WalMart never jumped at developing their own online music and movie download site but I guess they don't have to if they're getting some of the cut from Apple.