Back in August - before Apple launched its movie download service - reports surfaced that Wal-Mart was pressuring Hollywood studios to offer better wholesale DVD prices so that it could better compete with the iTunes Store's pending move download service. On Friday, the New York Post reported that Wal-Mart threatened the studios with retaliation if they sign on with Apple.

Wal-Mart's fear is that Apple's movie sales could cut into its lucrative DVD sales numbers. Those numbers translate into dollars for the studios, too, since Wal-Mart is responsible for a substantial portion of all DVD sales. The company is expected to account for 40 percent of the DVD movie sales for 2006.

The possibility that Wal-Mart could cut back on, or even stop selling, some movie titles may have been enough to keep most studios from signing on with Apple's iTunes Store movie download service. One unnamed studio executive is reported to have said "[Wal-Mart] threatened to hurt us in terms of buying less products."

Wal-Mart, however, said the reports are wrong. According to Reuters, the big box retailer has no intention to dissuade Hollywood executives from striking deals with Apple.

A Wal-Mart spokesperson commented "Customers want to watch movies and they want to be able to make the choice when and how they want to view them. While we recognize there are various current and potential providers of this service, we are not dissuading studios from conducting business with other providers."

It may turn out that movie download services won't have an impact on DVD movie sales. Wal-Mart's research apparently indicates that online movie buyers are not the same customers that purchase DVDs in stores.

In the end, Wal-Mart's sizable DVD sales is something that movie studios do not take lightly. Regardless of whether or not the retailer is threatening movie makers, the studios are likely to sit back and wait to see how Wal-Mart's reaction to Apple's movie download service plays out.