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Walmart to shutter MP3 store after failing to catch Apple's iTunes

post #1 of 32
Thread Starter 
Retail giant Walmart revealed on Tuesday that it will close its MP3 store later this month, even as Apple's iTunes continues to dominate the digital music industry.

The company declined to provide further details regarding the move, saying only that it was a "business decision," as noted by the Associated Press. Walmart will close the store on August 29, though customers who have already purchased music through the site will still be able to access their music there.

The world's largest retailer opened its MP3 store in 2003 in direct competition with Apple's iTunes. The digital storefront failed to gain much traction, however, with music sales on iTunes eventually passing Walmart's combined physical and digital sales in 2008. Apple held 26.7 percent of all music sales by 2009, more than double Walmart's 12.54 percent share.

As of late last year, Apple continued to dominate the digital music market with a 66 percent share, while second-place Amazon had climbed to 13.3 percent. Walmart's share stood at less than one percent.



NPD analyst Marshall Cohen characterized the retail industry as being in flux, noting that Walmart may be better off focusing on what it does best, rather than continuing to deliver a sub-par experience to consumers.

"It is very easy to become antiquated very quickly in the entertainment industry," he said. "If you are losing ground, and they probably were losing ground more rapidly year after year, it's probably better to regroup and retool."

Walmart's failure with its digital music store has been partially attributed to its choice of format. The company bet on Windows Media Audio, but eventually found itself competing with Microsoft's own Zune Marketplace while being blocked from Apple's iPod.
post #2 of 32
Big shock there....
I never get tired of being right all the time... but I do get tired of having to prove it to you again and again.
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I never get tired of being right all the time... but I do get tired of having to prove it to you again and again.
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post #3 of 32
So all of the DRM'd music there is instantly rendered unplayable on everyone's machines, or what?

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #4 of 32
Quote:
Originally Posted by Tallest Skil View Post

So all of the DRM'd music there is instantly rendered unplayable on everyone's machines, or what?

Read the article!
post #5 of 32
Quote:
Originally Posted by AppleInsider View Post

Walmart will close the store on August 29, though customers who have already purchased music through the site will still be able to access their music there.

I wouldn't count on that lasting very long.
post #6 of 32
Quote:
Originally Posted by AppleInsider View Post

Retail giant Walmart revealed on Tuesday that it will close its MP3 store later this month, even as Apple's iTunes continues to dominate the digital music industry.

.

That makes perfect sense. It is a distraction for them. They do best with their retail stores, which is their strength.
post #7 of 32
Quote:
Originally Posted by gchriste View Post

Read the article!

Care to elaborate on where in the article it mentioned DRMed music? The closest I found was "Walmart will close the store on August 29, though customers who have already purchased music through the site will still be able to access their music there." However, that hardly addresses the question of DRMed music on one's computer as was posed.

A more friendly answer to the question would have been something along the lines of "MP3's aren't DRMed" (which only took one extra character to write).
post #8 of 32
Another one bites the dust

CNN: Obamacare largest tax increase in American history

 

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CNN: Obamacare largest tax increase in American history

 

FORBES: ObamaCare's 7 Tax Hikes On Middle class

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post #9 of 32
Quote:
Originally Posted by FriedLobster View Post

Another one bites the dust

Beating out WalMart is a Big Deal, even for a giant like Apple. Damn few companies outlast or outmarket them.
post #10 of 32
Quote:
Originally Posted by gchriste View Post

Read the article!

And we're to believe this will go on indefinitely? Some iTunes-wannabe big chain store tried to shut down their DRM servers already. People raised a ruckus about it, but that won't stop Wal-mart from doing the same.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #11 of 32
I wouldn't buy a tube sock at Walmart to save my life.
post #12 of 32
I didn't even know Wal-mart had an MP3 store. Effective marketing there, methinks.
post #13 of 32
When will these guys learn.
post #14 of 32
Quote:
Originally Posted by AppleZilla View Post

I wouldn't buy a tube sock at Walmart to save my life.

Lots of people willingly and happily do.

That's all that matters.
post #15 of 32
Many have tried, all have failed to unseat the iTMS. For all the basement nerd haranguing about iTunes it is the best application out there, period.
post #16 of 32
Why even make the effort if they're going to put up a half-a$$ed effort and not market it? Better yet, let's DRM the music so it's only compatible with a failed music player.

I hope the clowns that thought this up have been fired. If I ever see one of them list Wallmart Music as their management experience, I'll gladly show them the door.
post #17 of 32
Quote:
Originally Posted by AppleInsider View Post

...

Walmart's failure with its digital music store has been partially attributed to its choice of format. The company bet on Windows Media Audio, but eventually found itself competing with Microsoft's own Zune Marketplace while being blocked from Apple's iPod.

Does not take an expert to understand using a format that does not work on 90% of the music players would be problematic...
post #18 of 32
Quote:
Originally Posted by AppleZilla View Post

I wouldn't buy a tube sock at Walmart to save my life.

Then you have a very poorly developed survival instinct, AppleZilla, and I wouldn't want to be on a mountain climb with you.
post #19 of 32
I got a few free download cards from my dad who got them in some sort of Wal-Mart promotion. By that time I believe they switched to MP3; the problem was the selection. Have any of you ever browsed he Wal-Mart music aisle? Their MP3 was like a tit for tat on-line take, complete with clean only versions of songs and some insanely incorrect genre classifications (think Ace of Base stuck in the Hip-Hop section type mistakes).

Back to the cards -- I spent probably an hour finding anything I even WANTED; the selection was that bad.
post #20 of 32
Quote:
Originally Posted by VinitaBoy View Post

Then you have a very poorly developed survival instinct, AppleZilla, and I wouldn't want to be on a mountain climb with you.

There many Wal-Marts on K2, VinitaBoy?

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #21 of 32
Quote:
Originally Posted by AppleZilla View Post

I wouldn't buy a tube sock at Walmart to save my life.

Some people actually believe such remarks are some sort of moral litmus test. Cheaper and easier than real morals, but of course completely meaningless. Sad.
post #22 of 32
Quote:
Originally Posted by Mister Snitch View Post

Some people actually believe such remarks are some sort of moral litmus test. Cheaper and easier than real morals, but of course completely meaningless. Sad.

Walmart has some truly despicable business tactics. But I guess you are the expert on which morals are real and which aren't.
post #23 of 32
In better news for Apple's rivals, Spotify has gained 175,000 paying customers in the US since launching, worth $1.1 billion.
post #24 of 32
Quote:
Originally Posted by RichL View Post

In better news for Apple's rivals, Spotify has gained 175,000 paying customers in the US since launching, worth $1.1 billion.

Yes, yes, we all know Apple is doomed to failure.
post #25 of 32
Quote:
Originally Posted by RichL View Post

In better news for Apple's rivals, Spotify has gained 175,000 paying customers in the US since launching, worth $1.1 billion.

What method is used to conclude that Spotify customers are worth $629 each?
post #26 of 32
Quote:
Originally Posted by AppleInsider View Post

....noting that Walmart may be better off focusing on what it does best, rather than continuing to deliver a sub-par experience to consumers.

Um... that's what Walmart does best.

I have always had a sub-par experience in Walmart stores. The only thing I buy there is ammunition and it usually takes about 10 minutes for someone to find the key to open the ammo case. Then they have the weird store policy of asking if the ammo is going to be used in a handgun. Since I'm normally buying 9mm ammo, the question is bizarre since the only non-handgun firearms I know that use 9mm are automatic weapons.
post #27 of 32
Quote:
Originally Posted by GregInPrague View Post

What method is used to conclude that Spotify customers are worth $629 each?

Good catch
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
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Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
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post #28 of 32
Quote:
Originally Posted by GregInPrague View Post

What method is used to conclude that Spotify customers are worth $629 each?

Because the world isn't just America. Spotify has been out in other countries for many years.
They also make money on sending advertising out to non paying customers.

"Apple sold 1.5 million iPhone 4 in the first day, the company is worth 60 Billion dollars"
"How is that possible unless each iPhone 4 costs $40,000 each"

Companies have history.
post #29 of 32
Quote:
Originally Posted by Evilution View Post

Because the world isn't just America. Spotify has been out in other countries for many years.
They also make money on sending advertising out to non paying customers.

"Apple sold 1.5 million iPhone 4 in the first day, the company is worth 60 Billion dollars"
"How is that possible unless each iPhone 4 costs $40,000 each"

Companies have history.

The post I was replying to says "In better news for Apple's rivals, Spotify has gained 175,000 paying customers in the US since launching, worth $1.1 billion." The sentence clearly says that the 175,000 US customers are worth $1.1 billion, not that the company is now valued at 1.1 billion.

If I say "In better new for Apple's rivals, Bill Gates has gained 175,000 diamonds, worth $1.1 billion" wouldn't you assume I'm talking about the value of the diamonds rather than Bill Gates total net worth?

It is entirely possible to put a per customer value on a customer base for a subscription-based company. It isn't nonsense that the OP did so, I just wonder where he came up with such an amazingly high value per customer.
post #30 of 32
post #31 of 32
Thant's a shame - I'm told that competition is supposed to be good for innovation.
post #32 of 32
Walmart had an mp3 store? Really?


Quote:
Originally Posted by Quevar View Post

estion would have been something along the lines of "MP3's aren't DRMed" (which only took one extra character to write).

so long as it is downloaded files it really doesn't matter. If they are DRM'd someone has probably already hacked that out of the files or will very shortly.

And if they don't it sounds like it could be iTunes Match for the win.

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply
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