Walmart today launched an online movie download site. They have deals with ALL six major movie studios, so the library has a lot of room for growth (only 3,000 titles on launch).

In the “Wal-Mart” fashion they undercut everyone on price by mere pennies
. New releases start at $12.88 – $19.88. TV shows are only a 4 cent savings over other services at $1.96.
I don’t think that online people care that a tv episode cost 4 cents less, or that they just saved 20 cents on a movie down. It’s Wal-Mart, they have the whole retail thing down, but online they just don’t cut it. People go for the cool, hip trendy companies online, and I’ve never heard anyone say Wal-Mart is cool.
I really beleive they only do it so when people search sites like froogle, it comes back as the cheapest way to do it.