Wal-Mart has denied a report in the New York Post claiming that the retail giant had told movie studios not to seek alternative distribution channels such as iTunes.

The Post report cited Wal-Mart's fear that its DVD retail sales may suffer as the reason for its warning to movie studios, according to Reuters. A Wal-Mart spokesperson flatly denied this claim, telling Reuters, "While we recognize there are various current and potential providers of this service, we are not dissuading studios from conducting business with other providers."

Shares of both Apple and Walt Disney Co., the first studio to offer movie downloads, fell last Friday, although analysts disagreed over what role the Post story and Wal-Mart's reaction played in the movement of the stocks.