Connected TV platforms are growing in number as everyone tries to grab a piece of the emerging Web video sector. Vudu, up to now a distinct also-ran, has increased its chances of standing out from the crowd by being acquired by budget retailer Wal-Mart.
Vudu
is one of the many companies which started out offering a set-top box for serving Web video to consumers. When that strategy didn’t work, it became one of the many companies which switched to focusing on software rather than hardware.
This means Vudu’s service is now included on a number of other Web-connected devices instead, including televisions and Blu-ray players. The Wal-Mart deal will inevitably affect deals in place with Mitsubishi, Sanyo, Sharp, and Toshiba, but quite how isn’t clear.
Wal-Mart
Wal-Mart is one of the largest chain of department stores in the States. It also operates under different names outside of the U.S.
This acquisition of Vudu isn’t the company’s first attempt at offering video streaming. In 2007, Wal-Mart began to offer customers TV and movie downloads in partnership with Hewlett Packard. But it wasn’t successful, and the service was stopped just a year a later.
Wal-Mart Acquires Vudu
After months of speculation concerning an acquisition of Vudu, Wal-Mart has bitten the bullet and done a deal. The New York Times reports that Wal-Mart beat the likes of Best Buy, Amazon, Comcast, and EchoStar to grab Vudu.
No details of the deal have been revealed, but MediaMemo is claiming Wal-Mart will pay in excess of $100 million for Vudu. Vudu will become a wholly-owned subsidiary of Wal-Mart but continue to develop its App Platform.
Eduardo Castro-Wright, vice-chairman for Walmart, said:
“The real winner here is the customer. Combining VUDU’s unique digital technology and service with Walmart’s retail expertise and scale will provide customers with unprecedented access to home entertainment options as they migrate to a digital environment.”
Conclusions
Wal-Mart is taking a bit of a gamble with Vudu, especially paying the kind of money being reported. There’s no doubt this is a brilliant time to enter this market but whether Vudu is the right option remains to be seen.
What is clear, however, is that both companies will benefit from the deal, at least in the short-term.
