The news broke today that troubled movie streaming service Vudu is
being acquired by Wal-Mart
for a rumored $100 million. Amid interest from Comcast, Amazon, and Best Buy it seems that America’s largest retailer just had the deepest pockets and the apatite to get into the streaming game. The deal is likely to be finalized in a matter of weeks.
Wal-Mart is the largest seller of DVDs, but has never had a platform for delivery of video over the internet. With the purchase of Vudu, they have a mature service with many content deals already in place. The interesting thing about Vudu is that they stopped making a stand-alone hardware box last year, instead focusing on getting their software embedded in various devices like TVs and Blu-Ray players. Guess who sells a lot of TVs. Yep, Wal-Mart.
It would be reasonable to expect Wal-Mart to aggressively push Vudu enabled TV’s and other devices now that they own it. We may also see manufacturers become more receptive to adding the Vudu service to their products now that a behemoth like Wal-mart is involved. Wal-mart effectively drives down prices wherever they go, could that also hold true in the video streaming space? Could we be looking at a cheap streaming future? Let us know what you think in the comments.