Itunes passes Walmart in music sales, but with Walmart’s help

A few days ago I was a little surprised to learn that I tunes had passed Walmart in gross music sales. It seems that Walmart is currently offering less downloadable product: The have stopped selling anythign with DRM:

Over the last few months, the meme has taken hold that the big record labels had finally come to terms with the fact that DRM didn’t help and only frustrated users — and was finally okay with getting rid of it entirely. That sounds good, but it appears that the labels are still having trouble letting go. Wal-Mart’s online download store has finally abandoned selling any DRM’d tracks, but with it, it’s lost almost all music from major labels like Sony/BMG and Warner Music. (Techdirt)

This gives Apple a short term advatage while the music industry plays chicken with the world’s largest retailer. The reality is, DRM is a huge hassle for the retailer and creates huge customer service / satisfaction issues that are costly to deal with. I’m sure the Sony and Warner suits think they are playing chicken with easily manipulated Arkansas hayseeds. The truth is, if you sell to Walmart, they call the shots or they don’t buy. I think we will soon be able to thank Walmart for finally killing DRM.