Walmart is Buying Vudu Video Streaming Service

Posted Mon Feb 22, 2010 at 04:15 PM PST by

The world’s largest retail chain enters the digital distribution race.

Things are silent in terms of communication with the press, but both Walmart and Vudu have informed studios and distributors that a deal has been reached. Walmart will soon officially own the Vudu rental service.

While Vudu isn’t the most popular streaming service, this deal with Walmart could mean big things for the company. Namely, the Vudu service will now have national exposure. The one thing Vudu has that others don’t is a huge selection of HD titles.

There are a lot of great benefits for Walmart in this deal, but first and foremost this will almost certainly put them on the map as a legitimate distributor of digital movies. They’ve tried before with both MP3s and movies but never really had much luck.

The second is in advertising. In an effort to one up the competition, television and BD player manufacturers added more and more streaming services to their new sets. Among those services is Vudu. Even if you don’t buy your TV from Walmart, you still might have a Walmart branded service on your set.

Lastly of course, there’s the option to sell more than just movies. Walmart could incorporate not just digital music sales into the Vudu service, but merchandise sales as well. Giving customers the option to browse and purchase products without leaving the couch may be the perfect move for the massive company.

Source: The New York Times

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Tags: Wal-Mart, VUDU (all tags)