Walmart to shutter MP3 store after failing to catch Apple's iTunes
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.
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.
Comments
So all of the DRM'd music there is instantly rendered unplayable on everyone's machines, or what?
Read the article!
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.
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.
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That makes perfect sense. It is a distraction for them. They do best with their retail stores, which is their strength.
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).
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.
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.
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.
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.
...
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...
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.
Back to the cards -- I spent probably an hour finding anything I even WANTED; the selection was that bad.
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?
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.