Wal-Mart launches movie, TV download service

An announcement in September by the Walt Disney Co. (DIS.N) that it would sell TV shows and movies on Apple Inc's (AAPL.O) iTunes prompted reports that Wal-Mart was concerned that digital distribution would cut into its DVD sales and had threatened to retaliate against the studios.

Wal-Mart denied the reports.

In launching its new service, Wal-Mart's Swint said the retailer should be able to draw consumers by offering a vast array of titles.

"We have all the major studios present," he said. "We're fairly unique in the marketplace."

While Wal-Mart may be the world's largest retailer, it has stumbled in previous efforts to expand its online offerings. In 2005, it pulled out of the online DVD rental and instead directed its subscribers to Netflix Inc. (NFLX.O) for rental services.

Wal-Mart said in the service being introduced on Tuesday, movie releases will be available for video download the same day the DVD is released.

The retailer said the service is powered by technology from Hewlett-Packard Co. (HPQ.N)

Wal-Mart shares rose 1 cent to $48.53 in afternoon New York Stock Exchange trading.