Retailers' online price war moves to DVDs: What's next? |
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From Walmart.com
When Wal-Mart, Amazon.com and Target started getting into an online price war over top-selling books, it seemed only a matter of time before the battle moved to other products. After all, Wal-Mart and Target are trying to pump up their ecommerce efforts across the board, not just with books. Now, we're seeing signs of a new round of heavy discounting on DVDs.
As with the books, Wal-Mart started this one, and is following the same pattern: offering the top ten pre-selling DVDs online for about $10. Amazon and Target matched Wal-Mart's prices on select titles, and Wal-Mart shaved a few more pennies off.
Wal-Mart seems to have something to prove after a recent New York Times story asked if Amazon, which has been steadily expanding its product selection, is becoming "Wal-Mart of the Web." Wal-Mart has chosen books and DVDs — two of Amazon's signature products — to launch the online price war.
Of course, there's a lot of discounting that goes on online as part of the holiday shopping season, but Wal-Mart, Amazon, Target are selling these particular books and DVDs at prices that are guaranteed to lose them money. It will be interesting to see where the cat-and-mouse game moves next. Blu-ray discs or CDs?
One side note: even as Amazon and Target engage in the price war, Amazon is continuing to run Target's ecommerce operations. Target recently said it is dumping Amazon as a partner, but the divorce won't kick in until the two companies' contract expires in 2011.
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ERIC ENGLEMAN is senior technology staff writer for TechFlash and the Puget Sound Business Journal, covering online retail giant Amazon.com. Engleman tracks Amazon's increasingly complex business, spanning ecommerce, Kindle, cloud computing, and more. He's been covering technology and other industries for the Business Journal since 2003.
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