Wal-Mart has denied reports that it has been exercising its corporate muscle to prevent movie studios working with new online film distribution services.

According to the New York Post, Walmart, spurred by fears of the impact of online distribution systems on physical DVD sales, had warned studios that it may retaliate against them for selling movies through iTunes.

Responding to that report, a Wal-Mart spokesperson said the company had not moved to dissuade studios from "conducting business with other providers", Reuters claims.

The report adds the observation that at present new media sales are not impacting on existing distribution systems.