Ok so walmart, the commodifier is going against apple, who seems like a bit of a polar oposite, some might charicterize high margin, high style. So is walmart going to take apple to the mat by undercutting apple by 11c (88c vs 99c)?
I will go out on a limb here and suggest that experience matters. I know walmart is a large and scary company but on first blush I’d say they are not going to become the dominant player with a their current strategy. They have a web based interface, no desktop application integration except that windows media player knows how to open the files, and on top of that they have DRM (Digital Rights Managment) restrictions and file format restrictions.
The iTunes product seems to create such a seamless experience that blends the management of my music that I’ve ripped and the music that I’ve bought, that I sometimes forget what I’ve purchased via itunes and what came from my CD media.
Well it will be interesting to see how this pans out, it looks to me as if walmart is just calling this one in, no innovation around the customer experience and that is what its going to take.
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