Consumer confidence is hitting an all-time low, and so is Wal-Mart... at least when it comes to music downloads.  Wal-Mart, famous for introducing bottom-scraping 88-cent downloads, is now dialing deals down to 74-cents.  That is below cost, though Wal-Mart is only offering the deal on popular, promotional cuts, not the broader catalog.  In most cases, downloads will carry a price point of 94-cents.

The move is part of an enhanced MP3 Music Downloads store, one that now includes three million tracks from all four major labels.  Wal-Mart was forced to drag Sony Music Entertainment and Warner Music Group into DRM-free licensing, though the company is now brokering exclusively in MP3s.  That means more compatibility and increased confidence for buyers, at least when it comes to digital music.

But will any of this lift Wal-Mart out of download obscurity?  If anything, Wal-Mart proved that price-chopping is mostly irrelevant in the paid download category, particularly when the enemy is the iTunes Store.  Similarly, the presence of MP3s is having minimal impact on the competitive climate, according to recent comments by Warner Music Group chairman Edgar Bronfman, Jr. 

But Wal-Mart carries a major brick-n-mortar advantage, and the company is starting to thread the environments together.  Starting mid-November, anyone purchasing an album from Wal-Mart (or walmart.com) will receive a complementary download.  The company can also deliver music across any format, whether CD, DVD, MP3, or videogame.