Walmart Purchase of Vudu Video Service In The Works

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According to sources, Walmart has agreed to buy Vudu, the silicon-valley producer of video streaming services for web-connected TVs, DVD/Blu-Ray players and self-branded hardware.  Vudu would bolster the retail giant’s sales of video media, following consumer demand as it changes focus from DVD media to online streaming of TV and movies.

The news that Walmart has agreed to buy Vudu comes on recent successes by Vudu to expand their offering to a wider audience.  While Vudu started with a focus on hardware systems to manage digital distribution on the consumer end, they have now partnered with a range of big name hardware manufacturers to directly install their device into A/V products.  At CES this year, Vudu announced partnerships with Samsung, Sanyo, Sharp, Toshiba and expanded relatinships with LG, Vizio and Mistubishi.  New TVs and DVD/Blu-Ray players from these manufacturers will likely include the Vudu service, allowing consumers to instantly stream videos purchased online.

This on-demand style of video streaming has began to cut into the market for DVD media.  Walmart remains one of the largest sellers of DVDs in the world, and the move to purchase Vudu gives them a foot in the door for the next market for video media, internet streaming.