Giant US retailer, Target, has warned US movie studios not to offer movie download services such as iTunes better deals than brick-and-mortar DVD retailers get.

Target president Gregg Steinhafel warned that the retailer doesnt want studios to offer newly released movies to online services at a lower cost than DVDs.

He ignores the fact that online movies are sold at lower quality, without extras and without the need for manufacturers to spend cash on packing, postage or pressing, or for retailers to dedicate staff and shelf space.

Target holds 15 per cent of US DVD sales. To protect its piece of US consumer wallets, the Target president says he wants "a level playing field".

He threatened studios, too, saying that if Target doesn't get the kind of deals it wants it may change the way it handles DVD sales in-store.

Wal-Mart recently made similar complaint, but softened its approach after Apple CEO Steve Jobs called Wal-Mart CEO Lee Scott to complain about "anti-competitive" behaviour. Wal-Mart commands 40 per cent of US DVD sales.

Apple is expected to be attempting to secure movie prices below those charged for DVDs, taking into account the lower production costs.

More studios are unlikely to sign-up for iTunes Store until after Christmas, AppleInsider says.