Specs
Specifications from Wal-Mart.com:
PC Format: Recommended for our customers that do not own or intend to purchase a compatible portable video player. PC/Laptop videos can be played on a PC/Laptop or on the TV via a Windows Media Extender (e.g. Xbox 360) or through direct connection from a PC to a TV. Videos in this format have the highest image quality. Technical Specification: 640 X 480 maximum resolution, 30 fps, 1,500-1,700 kbps average bit rate. THIS FORMAT WILL NOT PLAY ON MOST PORTABLE VIDEO PLAYERS.
PC & Portable: Recommended for our customers that own or intend to purchase a compatible portable video player. This bundle provides the greatest flexibility providing you two files: one to play your on PC, and one for your portable players. This bundle requires approximately 30% more storage space and time to download as a stand-alone PC/Laptop format. PORTABLE BUNDLE FILES ARE NOT COMPATIBLE WITH iPODS.
Available TV Episode Formats:
Portable Format: Our TV episodes are optimized for fast downloads and viewing on the go. All TV shows can be played on both your PC/Laptop and compatible portable video players. Technical Specification: 320 X 240 maximum resolution, 30 fps, 500-810 kbps average bit rate. PORTABLE FILES ARE NOT COMPATIBLE WITH iPODS.
I think competition is a good thing. But Apple's product differentiation will easily justify the four cent premium for iTunes-purchased downloads. I don't particularly understand what Wal-Mart hopes to accomplish by completely ruling out any chance of migrating content to the iPod, the most popular portable media player on the market. However, it's entirely possible Wal-Mart, as powerful as they are, didn't have a choice in the matter.
If they were, like Apple, struggling to negotiate with studios for their own online downloads it certainly would explain a lot of the pissing and moaning from their end prior to launching the beta store. Apple has a very good head-start though... partly because of their timing, but also because of their market presence with integrated solutions to browse, access, purchase, download and play the product.
The important thing to note here is that competition IS good, that Apple will be kept on their toes by competitors seeking to edge them out and that means more choices and better products at better prices, and, perhaps most importantly, this demonstrates that despite Wal-Mart's whining and initial fears, internet distribution of movies is happening with or without them.
Wal-Mart would have been utterly foolish to persist in deluding themselves to believe otherwise.
... isn't it interesting, though, how closely this beta release comes after Disney announced their initial figures and pointed, particularly, at the fact that their biggest sellers' DVD sales were not hurt by downloads. That in fact, for "Pirates of the Caribbean 2" and "Cars", both iTunes purchases AND DVD sales grew...
It's as if the Reality Fairy flew over Wal-Mart headquarters and jettisoned a few bricks of hard data directly over the board room.
(if that's possible) I have never stepped foot in one and never will. The no iPod support is dumb. Jeez, just single out 65%+ of the market why don't ya? 
TV; we'll see how useful that is at home streaming from the Mac.
