Digital dizziness
I've got a business plan. I'm going to sell video downloads out of the basement. The rub is that I live in South Florida, and we don't have basements down here. That shouldn't stop me, though. Everybody seems to be selling digital downloads these days.
Just this past week, Wal-Mart (NYSE:WMT) threw its hat into the crowded ring. Sure, the place where you can get a pair of tube socks or sticks of beef jerky at rock-bottom prices doesn't seem like the kind of place you would want to hit up for a virtual copy of Saw III, but let's see how that goes. After watching Blockbuster (NYSE:BBI) land a ton of new subscribers to its Total Access plan this past quarter, I won't jump to conclusions when it comes to old-school companies trying to matter in the new economy.
Unfortunately for Wal-Mart, the day after it announced its video downloading store, Amazon.com (NASDAQ:AMZN) hooked up with TiVo (NASDAQ:TIVO) to introduce a service that will send digital rentals and purchases directly to your TiVo.
I'm holding out. The first company that can get theatrical releases beamed to the back of my eyelids will get my celluloid cents.
One against four
Leave it to Apple's (NASDAQ:AAPL) Steve Jobs to get the Fab Four to "come together, right now" over green. Apple settled its dispute with The Beatles on Monday over Apple's push into music. The Beatles, who recorded under the Apple moniker, had initiated the lawsuit when Apple moved away from its computing roots with the introduction of its iPod and iTunes Music Store.
Apple hasn't had a problem with rushing into things. It introduced the iPhone even as Cisco (NASDAQ:CSCO) held the trademark to that registered brand.
However, music has become a real passion for Apple. Labels have come to rely on Apple for the high-margin bounty of digital delivery. Apple has sold more than 2 billion songs through its online store.
That said, did it surprise anyone earlier this week when Jobs called for the major music labels to put an end to copy-protecting their tunes through digital rights management? Jobs feels that songs without strings attached would be the best move for the industry. Music fans would no doubt agree.
Normally someone making that kind of suggestion would be laughed off the stage by the industry. In fact, the entertainment industry was critical of Apple when it rolled with its "rip, mix, burn" marketing campaign. However, I'm saying that Jobs will get heard this time. When you move 2 billion songs, the music industry has no choice but to listen.
Until next week, I remain,
Rick Munarriz
Wal-Mart is a selection in the Inside Value newsletter. TiVo and Amazon.com are picks for Stock Advisor subscribers.
Longtime Fool contributor Rick Munarriz recommends windshield wiper fluid when trying to look back. Rick is part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. He owns shares of TiVo. The Fool has a disclosure policy.
