Wal-Mart (NYSE: WMT) is cutting exclusive deals with major artists in a play to improve traffic to its stores and online operations.
According to The New York Times, "Wal-Mart was the largest music retailer in the country last year, so musicians (and their labels) are eager to maintain good relationships, appearing in the special concerts for the chain, which are also open to the public."
But The Wall Street Journal had a much better picture of what is going on. Rock band AC/DC is about to announce a partnership with Wal-Mart in which it will sell its new album only in the largest retailer's stores. The paper writes, "The AC/DC deal, however, comes at a time when the retail giant -- the largest seller of compact discs in the nation -- is signaling it may rock the music world by stocking fewer CDs."
Both papers point out that the deal will hurt music labels that count on CD sales, but neither shows the extent to which Wal-Mart is becoming the unlikely largest competitor to Apple (NASDAQ: AAPL)'s iTunes. AC/DC's music will not be found there.
Media companies can't stand up to Apple, but in an odd twist, the world's largest retailer can.
Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 letter.
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Reader Comments (Page 1 of 1)
6-09-2008 @ 12:42PM
Beltway Greg said...
Doug,
Hell's bells. Given what you've posted and continue to post on Apple you've either truly missed the boat or be short. Either way you're going to lose big guy.
Beltway Greg