Wal-Mart buys Vudu; enters OTT delivery fray?

Wal-Mart has agreed to acquire over-the-top (OTT) content provider Vudu.

Terms of the acquisition weren't released, but the companies reportedly informed Vudu's Hollywood studios and TV manufacturers of the deal. The acquisition could make Wal-Mart, already a leader in DVD sales, a formidable competitor in OTT service delivery as well. Vudu started offering its service with a required standalone set-top box (STB) three years ago. But, following a difficult business case, it transitioned to embedding its software into Blu-Ray players, IPTV STBs and high-definition TVs from LG Electronics, Vizio and Mitsubishi, and more recently announced partners Samsung, Sanyo and Toshiba. The company has also sought partnerships with independent telcos looking for a cheaper alternative than IPTV and distinguished itself with a focus on HD content and expansion into applications and Web services. Wal-Mart has been moving into the services space already too. Along with Hewlett-Packard, it attempted a movie and TV download service in 2007, but the venture only lasted a year following weak consumer adoption. In the past year, Wal-Mart has delved into wireless services as well, including its exclusive StraightTalk mobile brand.