Target expressed concern that movie download services will get a better deal from studios than the retailer gets on DVDs, the Wall Street Journal reported.

Big retailers such as Target and Wal-Mart are struggling to adapt to the new digital downloads and don't want to lose their DVD customers to these services. Wal-Mart accounts for roughly 40 percent of the market for big-studio DVDs; Target, the No. 2 discounter behind Wal-Mart, accounts for about 15 percent of the market.

Target President Gregg Steinhafel sent a letter to major Hollywood studios asking for a level playing field for pricing DVDs. Recently Apple Computer announced a deal with Disney to sell electronic copies of Disney movies online via Apple's iTunes store starting at $12.99 a piece for new titles.

Target told the studios that it would reconsider its investment in the DVD business, the Journal reported.