Apple Inc (AAPL)

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13:33 AAPL Apple Computer and Wal-Mart talking about being friends - AppleInsider (77.05 +0.04) -Update-

AppleInsider reports Apple Computer and Wal-Mart (WMT) are in discussions over an alliance that could allow the retail giant to profit from iTunes movie downloads, says Variety. According to the report, a deal could take the form of a digital download "coupon" that would allow consumers to buy movies, television shows or music on iTunes with Apple paying Wal-Mart a percentage of the proceeds.

Apple chief executive Steve Jobs is said to have personally reached out to Wal-Mart CEO H. Lee Scott, "who badly wants to get into the digital film biz." Apple's new iTunes movie service has been a source of frustration for the retail giant, mainly because Jobs has mandated that movie studios license new movie releases through iTunes for about $3 less than the wholesale price charged to Wal-Mart.

So far, only Walt Disney (DIS) agreed to such terms. "Studio sources say the rest of the majors are very close to joining Disney in a deal with Apple but are holding off until the end of the key fourth quarter, when half of all DVD sales occur," Variety said.