The New York Times reports that Wal-Mart is partnering with all of the six major Hollywood studios — Walt Disney, Warner Brothers, Paramount, Sony, 20th Century Fox and Universal — to sell digital movies and television shows on its Web site, becoming the first traditional retailer to do so.

The move plunges Wal-Mart into competition with several established sites, like Amazon.com, CinemaNow and iTunes, and given the chain’s penchant for price cutting, could drive down the cost of a digital download.

Apple dominates the online music and movie industry, leaving a sliver for everyone else to fight over. However, Apple has only been able to work limited deals, primarily with Walt Disney, for its iTunes store.

Nevertheless, Wal-Mart has failed to make much of an impression in digital media.

“As much of an 800-pound gorilla as they are in retail sales, they are an 80-pound weakling when it comes to digital distribution,” said Michael Goodman, digital entertainment program manager at the Yankee Group, a consulting firm.