Retail giant WalMart has announced plans to acquire online video sale and rental service Vudu Inc. in a bid to strengthen its stand in the online media content market, which has players like Apple and Amazon offering media content to the masses.
The California based start-up, Vudu Inc., was founded in 2004 by Tony Miranz and Alain Rossmann and offer services that allows subscribers to watch movies on their internet enabled television sets, in which movies are streamed over the broadband connection.
Users who don't have a compatible device are required to purchase a set-top box which is available from $150 to $500.
Expressing his views on the deal, Wal-Mart Vice-Chairman Eduardo Castro-Wright, said in a statement that the deal "will provide customers with unprecedented access to home entertainment options as they migrate to a digital environment."
Several industry experts believe that Wal-Mart will use its dominating position in the retail market to make a mark in the online media content segment and being one of the largest digital music sellers in the US will only strengthen its cause.
Business Week reported that an analyst working with ThinkPanmure has predicted that the company plans to move into the digital books and online storage services market.
Walmart is one of the biggest companies in the world and with a market capitalisation of $205 billion, has the clout to take on the likes of Apple and any other major consumer electronics giants. Walmart will be directly going against the likes of Apple and Amazon and already has an online MP3 store.