Walmart Makes Major Video Distribution Acquisition

Feb 23, 2010  •  Post A Comment

Walmart, the largest retailer in the world, has made a major video distribution acquisition.

It’s acquired VUDU, the service, started in 2004, that distributes movie and TV shows. The deal was first reported by The New York Times.

In a story about the deal in Bloomberg’s Business Week, it said, "Buying VUDU pushes Wal-Mart further into the online territory dominated by Apple (AAPL), Amazon.com (AMZN), and Netflix (NFLX), and helps the retailer compensate for weakness in demand for CDs and DVDs sold through brick-and-mortar outlets. "The one area of Wal-Mart’s business that’s under threat is digital," says Sucharita Mulpuru, an analyst Forrester Research (FORR)."

The Business Week article also says VUDO "sells and rents downloadable movies and TV shows that can be viewed on such Web-connected devices as Blu-ray disc players and some LG televisions."

–Chuck Ross


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