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

Posted:
in iPod + iTunes + AppleTV edited January 2014
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.
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Comments

  • Reply 1 of 31
    Big shock there....
  • Reply 2 of 31
    tallest skiltallest skil Posts: 43,399member
    So all of the DRM'd music there is instantly rendered unplayable on everyone's machines, or what?
  • Reply 3 of 31
    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!
  • Reply 4 of 31
    chabigchabig Posts: 624member
    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.
  • Reply 5 of 31
    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.
  • Reply 6 of 31
    quevarquevar Posts: 101member
    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).
  • Reply 7 of 31
    Another one bites the dust
  • Reply 8 of 31
    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.
  • Reply 9 of 31
    tallest skiltallest skil Posts: 43,399member
    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.
  • Reply 10 of 31
    I wouldn't buy a tube sock at Walmart to save my life.
  • Reply 11 of 31
    I didn't even know Wal-mart had an MP3 store. Effective marketing there, methinks.
  • Reply 12 of 31
    When will these guys learn.
  • Reply 13 of 31
    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.
  • Reply 14 of 31
    lkrupplkrupp Posts: 7,072member
    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.
  • Reply 15 of 31
    sflocalsflocal Posts: 4,617member
    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.
  • Reply 16 of 31
    wovelwovel Posts: 956member
    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...
  • Reply 17 of 31
    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.
  • Reply 18 of 31
    bedouinbedouin Posts: 331member
    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.
  • Reply 19 of 31
    tallest skiltallest skil Posts: 43,399member
    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?
  • Reply 20 of 31
    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.
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