• Information Week, Wednesday, February 7, 2007 11:15 AM

Wal-Mart's new digital download store, launched yesterday in beta form, received a lukewarm reception from news outlets. Owen Thomas of Business 2.0 derided the retailer for its hefty prices: At nearly $20 for a new release, it's the same price as a DVD in one of its stores. He charges the store with forgetting its low-cost stance. Apple, on the other hand, sells movies on iTunes for between $9.99 and $12.99. Many feel downloads, with no packaging costs, should cost less than a DVD.

Despite the high price, Ken Fisher of Ars Technica calls the service "underwhelming" because it doesn't offer HD-quality or allow buyers to burn DVDs or share them with other media devices. Om Malik of GigaOm points out that the retail giant has had little success with previous technology efforts. Despite fewer partnerships, Malik and others pronounced Apple's iTunes the early winner of the crowded download market, due to its simplicity.

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