You are here: silicon.com > Networks > WebWatch

WebWatch

Wal-Mart opens online song shop but doesn't want money

'No profit' model from non-controversial music...

By Jo Best

Published: 25 March 2004 14:15 GMT

Wal-Mart, the world's biggest shopping chain, has announced it will finally be taking its song shop online.

The supermarket behemoth has been testing its download service for several months and eventually launched the internet service on Tuesday. While another addition to the already crowded music download market – which has seen big names like Virgin, Coke and Microsoft take the plunge - won't be setting the music industry alight, Wal-Mart's song shop strategy may raise a few eyebrows as it doesn't want to make any money from it.

It's selling its songs a lower cost than most rivals – 88 cents, compared to iTunes and others' 99 cent offerings – with a catalogue of tunes that currently stands at around a third of a million but making profits from pop isn't its goal.

The idea is to drive more traffic towards its internet business as a whole and make up the profits there. It's not the first song seller to adopt the strategy – Apple's iTunes has been hugely successful, shifting 50 million songs since launch but the real news for Apple's moneymen is that sales of the company's more profitable iPod digital music players have gone skywards along with the downloads.

And Wal-Mart's 'no profit' model isn't the only way that it might help to shape the music download market. The online store will operate like its physical cousins and only sell music approved by the company and designed to be family friendly and not controversial in any way.

Among those who merited the ire of the shopping behemoth was popster Sheryl Crow – not normally known for courting controversy. Some years ago, Wal-Mart banned sales of Crow's album because it contained lyrics criticising Wal-Mart's policy of selling guns. It also put the mockers on Oasis' latest offering because it contained a swear word in one of its song titles.

  1. Zones
  2. Management
  3. Networks
  4. Software
  5. IT Services
  6. Hardware
  1. Verticals
  2. Public Sector
  3. Financial Services
  4. Retail & Leisure
Read and write about internet access at the airports of the world at atlarge.com. Rate airports, and see what others have to say...

Rob Bamforth Seeking memorable mobile apps Quocirca's Straight Talking: Why are there so few?

Stewart Baines How much SEO is too much? Net Effect: Plus 10 tips on boosting your site's profile


  • Jobs
Senior Web Designer

If your skill is to motivate browsers to shop, your passion is fashion and you have an appreciation of European shopping habits especially the French ...

URGENT Web Developer Music Industry Closing date today!

Are you into music? THE COMPANY AND SITUATIONThis vacancy has cropped up at short notice with the deadline being the end of today! By any chance, I ...

Web Developer/ .NET Programmer

Implement an on-line shop Including sheet music downloading facility. A Web Developer is required for a small family run business to transfer a ...

Agenda Setters 2008
Welcome to the ninth annual Agenda Setters poll – silicon.com's list of the top 50 most influential individuals in the technology and IT industries, from techies and CIOs to entrepreneurs and business leaders. Find out more in our latest special report.





Quick Sitemap Links: