Walmart, the leading retailer of DVDs and Blu-ray Discs, is being hit by the rise of digital sales and rentals, it indicated in an FTC filing on Thursday. Although reporting an 8-percent rise in overall profits to $5.6 billion for its fourth quarter, it acknowledged that home video sales had been hard hit. The entertainment industry continues to experience overall deflation, as well as conversion to digital, Walmart chief Bill Simon said during a conference call with reporters and investors. Consistent with the industry, our entertainment business posted a mid single-digit negative comp[arison with last year].
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