Lookout Netflix: Walmart Buys Vudu!

The Appetizer

Walmart announced that it is acquiring Vudu, an online video streaming service.  The acquisition answers the question how the major DVD seller will be able to keep itself competitve against digital video streaming companies such as Amazon, Netflix, and Apple. Vudu already has over 16,000 indie and major films and television series, available over its service, all for a fee.  Between its relationships with  hardware makers, already established relationships with content providers, and Walmart’s massive list of contacts and relationships with content providers, it is a win-win situation for both companies, and also serves as a major threat to their current/potential competitors.

The Main Course

The Dessert

I never saw this coming.  Now this is how you make a comeback (speaking about Vudu)!  Vudu was a company that I actually thought was out of the picture when it came to the online video wars, and they have now returned to the forefront, poised to be the potential leader of the pack in the not so distant future.  Intially for me, reading about this was similar to when I first heard about the merging of FedEx and Kinkos– I could see the benefit for one company more so than the other, but I could not see how it made sense in the big picture.  Then I read the article, and just like FedEx-Kinkos situation, it clicked and it seemed like not only a phenomenal business move for both parties, but borderline genius.  It is very simple when it comes to Walmart and Vudu– this means trouble, big trouble to current digital streaming services because Walmart has the money, support, and marketing that Vudu needs to become the number one distiributor in that arena.  Vudu has the technology and foundation that Walmart needs in order to hit the ground running with offering video streaming services to a massive audience.

The Overall Meal

4 Stars!

The Doggybag

Do you think they have a good chance at becoming the leading IPTV based distributor or are they coming in too late?

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Let the convos begin!

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