Wal-Mart’s buying Vudu

Wal-Mart is branching out into the realm of streaming content with the acquisition of online movie service Vudu.

Parties involved been tight lipped, but both sides started to disclose the existence of the deal to movie studios and TV makers today. Financials are not yet available, and neither Vudu nor Wal-Mart reps have offered comment on the acquisition. While Wal-Mart reigns in the US DVD market, the massive retailer has yet to foray successfully into streaming content and their MP3 shop lags behind iTunes and Amazon. Vudu has seen some resistance in convincing consumers to add another device to their home TV setups, as DVD players, Wiis, Playstations and XBox devices already have a large footprint in many American homes.

The deal could see higher sales of content-ready TVs, creating a larger base of consumers interested in slimming down their TV clutter (DVDs take up a lot of space.) Streaming content would also allow the notorious cost-cutting retailer to make an easier buck without the expense of dealing with a larger physical inventory. Vudu stopped making hardware last year due largely to consumer resistance, and Wal-Mart previously forayed into digital distribution of content in an earlier partnership with HP.