Walmart to Exit MP3 Business on August 29

10.08.2011
iTunes wins another one. Walmart will shutter its online music store late this month and exit the MP3 business. While no public announcement has been made, the company confirmed the move to several news outlets on Wednesday.

Walmart has begun to alert its partners, saying the store will be disabled by the end of the day on August 29. The company still plans to support customers who purchased music for the foreseeable future, however.

Why did Walmart fail? Weak sales likely did the MP3 store in, as well as the lack of tight integration with a music player a la the iPod and iTunes. Add to this that the portion of the market not controlled by iTunes is getting quite crowded, and it's obvious why Walmart couldn't dominate the digital music business.

Walmart's MP3 store debuted in December 2003, although it officially launched in . It attempted to undercut iTunes by offering songs at 88 cents, but tracks were only available in Microsoft's DRM-protected WMA format, making the store unusable for iPod owners.

As players based on Microsoft's audio format never quite took hold, Walmart was forced to negotiate with the labels to offer MP3 files to stay competitive. DRM-free tracks , but that did little to help its cause.

The last nail in the coffin was likely Amazon's music store, . For whatever reason, the e-retailer's offering caught on with many consumers, and it passed Walmart to become the second biggest online music store.