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Monday, October 09, 2006

Target's Lament Targets Apple (TGT)(DIS)(WMT)(AAPL)

Target, the big retailer, sells 15% of the DVDs in the United State. And, the company thinks it is getting a raw deal compared to certain music download services who get a better financial arrangement.

The complaint seems to target Apple as much as any other company. Disney has recently concluded a deal with Apple to download movies for iPods. The price? $12.99 per film. This is several dollars below what DVD retailers have to charge, and also below the pricing that download operations like Amazon can offer under their arrangements with the content companies.

Wal-Mart has made a similar complaint.

Disney is a logical culprit in all of this. Steve Jobs sits on the Disney board, and is the company's largest individual shareholder. So, why does Apple get such a great deal on Disney content.

Everyone love a lawsuit, and, if the large retailers think they have been wronged, and Disney does nothing, court might be a fun place to get it resolved. Did anyone say antitrust?

Douglas A. McIntyre can be reached at He does not own securities in companies that he writes about.

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