Walmart will be buying the online movie streaming service, Vudu with the hopes that the second time will be different. In 2007 Wal-Mart first tried its hand in the video download market only to close it down in under a year.
"Combining Vudu's unique digital technology and service with Wal-Mart's retail expertise and scale will provide customers with unprecedented access to home entertainment options as they migrate to a digital environment."
Vudu has licensing deals with all of the big movie studios, but that’s of not that important to Wal-Mart, which has way more leverage with Hollywood than Apple, Netflix, or Amazon.
The studios need Wal-Mart’s physical reach much more than Wal-Mart needs to get into the digital movie business.