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News
Target, Disney Square Off On Movie Downloads
Thursday, November 16th, 2006 at 2:00 PM - by Jeff Gamet
The big box retailer, Target, isn't happy with Disney's movie pricing at the iTunes Store, and has teken steps to try to shake up the House of Mouse. On November 1, the company ordered all of its stores to to pull down in-store signage that promotes Disney products, according to Jim Hill Media.
The list of items no longer promoted in Target stores includes the Disney movies Cars and Pirates of the Caribbean: Dead Man's Chest. Cars is available on the iTunes Store now, and Pirates of the Caribbean: Dead Man's Chest is available for pre-order.
Target's gripe is that the movies are available at the iTunes Store for lower prices than in-store DVDs. Currently, Target lists Cars at US$15.99 and the iTunes Store offers it for $14.99. Pirates is priced at $14.99 at Target, and $12.99 at the iTunes Store as a special pre-order price. The week after Pirates hits store shelves, the price will go up to $14.99.
In response to Target's actions, the Wall Street Journal reports that Disney told the retailer that it wouldn't be shipping it any copies of Pirates, and wouldn't deliver any reorders of Cars. Target has since backed off some on its demand that Disney offer it the same pricing structure that Apple's iTunes Store gets.
The companies have been involved in negotiations, and it looks like - at least for now - that Disney will continue to ship DVDs to Target stores.
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