DVD Price War: Harry Potter, Star Trek For $10

Walmart announced yesterday that it will be slashing prices to below wholesale on 10 of the most popular DVDs that will be released soon, says the LA Times. Target announced that it will be matching Walmart. Amazon has not yet responded.

The LA Times says:

The price cuts are welcome news for movie studios because it could spur demand in a year of flagging DVD sales. The wholesale price paid by Walmart and its competitors remains unchanged at about $18, meaning studios will make the same profit despite the discounting.

It’s normal for retailers like Walmart to price DVDs below their wholesale cost at stores and online to draw customers who often spend more money on other items.

Although discounting is not unusual for Walmart and Target, the new $10 price means the retailers will incur a big loss on each sale.

It comes as the two companies and Amazon engage in a price war over books that has driven down the price of some hardcovers to $9.

Will these new unsustainably low prices get you to skip Redbox or Netflix and actually buy a DVD?

Walmart, Target slash online prices of popular DVDs [LA Times]