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Wal-Mart explores movie downloads
Report: The No. 1 seller of DVDs may test in-store kiosks to let customers download films to discs.
November 14, 2005: 8:41 AM EST
Wal-Mart still on top
Wal-Mart took No. 1 on Fortune magazine's annual list of the Global 500.(Full story)

NEW YORK (CNN/Money) - Wal-Mart Stores Inc., the world's biggest retailer, is in talks with Hollywood studios about installing kiosks in its stores to let consumers download movies onto DVDs, according to a news report Monday.

The plan for DVD kiosks is similar to a program already being tested in some Wal-Mart (Research) stores, which allows consumers to download songs onto compact discs, the Financial Times reported.

The move aims to alleviate the shortage of space on the retailer's shelves, the paper said. At the same time, it would benefit the studios by lowering their transportation costs and the costs of handling returns.

"We're exploring all different types of distribution mechanisms to the customer," David Porter, a vice-president at Wal-Mart told the paper. "There have been several discussions with most of the studios."

The studios are also looking at other retailers including Target (Research) and Best Buy (Research), according to the Financial Times.

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