Walmarts purchase of Vudu has got people asking “why is a major retailer dabbling in online tv and video?”. After all, it is still a fact that US consumers still prefer to spend their time watching traditional tv rather than browsing around the internet watching tv online. Walmart have entered the internet movie market because they can see its the future, whilst traditional DVD sales are dwindling. When everyone is watching online tv, Walmart wants to be a big player.

VUDU is a three year old online movie service which is embedded in a number of television sets and Blu-ray players carrying around 16,000 titles, allowing users to rent or buy movies instead of buying the DVD. Walmart are therefore hoping to compete with TV cable operators like Comcast who offer their own tv show and movies ondemand.

Although Walmart have dabbled not so successfully with digital music, they are more prepared this time and having a strong hold in the internet movie market could impact on other areas of their business. As a major consumer electronics retailer, Walmart could get their software (Vudu’s that is) into television sets and other set-top boxes it sells. By placing itself above Netflix and Amazon’s Video on Demand, it could gain greater market share amongst consumers who trust the brand.

It will of course still be a fight to succeed. Big players like Comcast, AT&T, Sony, Apple and others are all jostling for position. The big question is, can Walmart succeed in this fast moving digital market they are relatively new in.

It will be interesting given all the big names now entering the market who wins and who ends up with a bloody digital nose.

Related posts:

1. Walmart Buys Vudu And Enters The Movie Download Market
2. WalMart Looking To Enter Movies On Demand Market
3. Blockbuster Looking To Venture Into Online TV Market
4. Virgin Media Launch Online Movie Streaming Service