Apple in talks with Wal-Mart over movie download coupons

Well, well. The unlikely partnership between the leader in downloadable audio and video content -- Apple's iTunes -- and the nation's largest DVD seller -- Wal-Mart -- may be forming soon. Although both companies have probably thought that they both were threats to each other, it only seemed natural, I guess, that the world's largest retailer and the world's largest seller of portable digital media players join forces at some point.

Under the rumored deal, Wal-Mart could actually profit from downloads of iTunes movies (and music/TV shows possibly?) by having "digital download coupons" available in Wal-Mart stores that customers would then use to purchase media at the Apple iTunes store. The coupon tracking code would then generate a sliver of profit for the retailer every time a digital download coupon was used.

This not only further entrenches Apple's digital media tentacles into over 3,000 retail stores here in the U.S. alone (talk about a distribution partner), it allows Wal-Mart to receive a chunk of profit as Apple's largest distribution partner, which hopefully quashes the animosity the two companies have over who will win over consumers with movies and other media. Apple aims to be the top digital dog in virtual movie downloads, while Wal-Mart probably does not want to give up its crown as the 40% marketshare leader for physical DVD sales here in the U.S. -- and I doubt the movie studios want to see Wal-Mart lose that crown, either.