http://music.yahoo.com/read/news/18680533Amy Colella, a Wal-Mart spokeswoman in Brisbane, Calif., where the world's largest retailer's online operations are based, said many customers without a CD burner or broadband access to the Internet — which makes downloading music faster — prefer having their music in CD format.
"We see that physical CDs at our site at walmart.com continue to be strong," she said. "This (the customized CD) is just another service option. It's really just kind of to give them that added convenience."
The cost to download music from the site is 88 cents per song or typically $9.44 an album, Colella said. The cost for a customized CD of three songs is $4.62 plus 88 cents for each additional song. Shipping costs $1.97.
Analyst Phil Leigh of Tampa, Fla., founder of Inside Digital Media Inc., said other companies have been-there, done-that. "I think they (Wal-Mart) are going to be disappointed. The price isn't that attractive. It was tried before" by a few startup companies in the dot-com boom and was not successful, Leigh said. Also, other companies, like Apple iTunes, offer downloadable music that provides consumers "instant gratification." There's no real cost advantage to what Wal-Mart is offering here," Leigh said.