Wal-Mart acquired VuDu in February this year but nothing has changed with the service since. But first, what is VuDu anyway? Think Netflix. Add recently released movies, awesome 1080p HDX quality, and true 5.1, 6.1 or 7.1 surround sound. But subtract points because VuDu is video on demand and does not have an unlimited subscription service like Netflix. Wait….Wait…..Wait keeping reading ….I know…. I don’t like to pay per title either ok?
Ok, so what has changed since February? Well if you are a follower of this blog, you may have noticed in my last post I actually took the position that Netflix raising their rates might have a positive impact to the Internet TV industry long term. Wal-Mart appears to be taking the Netflix rate increase as an opportunity to compete more effectively. Content is no longer as exclusive as it used to be. Meaning, Netflix isn’t the only game in town for content owners to distribute their goods. In sum, Wal-Mart has a massive consumer base already that is very loyal and comfortable with the brand. Combine this fact with their ability to potentially mimic the Netflix library. Then add to this fact that Vudu is the perfect distribution outlet. It is proven and it works. Now we have a major competitive threat to Netflix and consumers have another choice for Internet TV beyond Netflix, Amazon, and iTunes.
On July 26th, Wal-Mart announced $.99 new releases available from www.walmart.com/vudu or directly from the Vudu application built into some Blu-ray and HDTV sets. Facebook followers have the ability to vote for their picks for $.99 rentals. This is a huge step for Vudu considering that many of their rentals have been in the $3.99 - $5.99 per rental range. Perhaps the next step is a subscription based service which I am eager to write about sooner than later. Let the competition begin.
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