While Walmart sells everything from gasoline to groceries, and they have a pretty sizable online presence, they haven’t gotten into the lucrative business of on-demand/streaming video. But that could all change with news that the box store leviathan is about to purchase streaming video service Vudu.
Much like Microsoft considering buying a smartphone company, this is a move that could help Big W keep afloat in an ever-evolving marketplace.
Walmart is currently the largest DVD retailer in the country, but as the quality of streaming and downloaded video improves to match DVD and Blu-Ray, more and more customers are moving in that direction. If Walmart doesn’t get into the online video business now, they risk losing a huge chunk of revenue.
But the acquisition of a struggling company like Vudu allows them to get a head start, rather than having to develop the technology or create a new infrastructure.
Is this a smart move for Walmart? Do you care who provides your on-demand video, so long as it looks good and the price is right?