Wal-Mart (WMT) seems to have signed an exclusive deal with rock band AC/DC for distribution of its new CD in the stores of the world’s largest retailer. Apple (AAPL) won’t be selling that album on iTunes.
According to The Wall Street Journal "The AC/DC arrangement aims to replicate a successful strategy recently used by fellow classic-rockers the Eagles and Journey, both of whom in recent months have sold new albums exclusively at Wal-Mart."
The record label companies can’t do much to fight Apple. The electronics company controls too much of the digital music world because of its 150 million iPods and its huge iTunes music and video store.
But, Wal-Mart does not have that trouble. It can offer tens of millions of customers of its own and can promote music not only in its stores but at wal-mart.com. According to comScore, Wal-Mart had 22.9 million unique visitors in April compared to 47.8 million for Apple. Some of the Apple visitors probably showed up to buy Macs.
One thing is for certain. Between iTunes and Wal-Mart most of the money coming in for music is not going to the music labels.
Another business, run out of town by Wal-Mart.
Douglas A. McIntyre
Top Gaining Stocks
Top Losing Stocks