Eighteen months after buying online movie service Vudu, big box retailer Walmart has a bonafide hit on its hands.
According to a recent report from IHS Screen Digest Media Research, Vudu has eclipsed both Amazon and the Sony PlayStation Store in the U.S. online movie store rankings.
During the first half of 2010, Vudu accounted for just 1% of the online movie market, based on revenue percentage. For the first half of 2011, Vudu had 5.3% of the market, putting it in third place after behemoth iTunes and Microsoft’s Zune Video Marketplace.
The Wall Street Journal sums it up best, writing “Vudu could become Wal-Mart’s biggest Internet-related success to date‚ although that doesn’t say much.”
When Walmart first acquired the online movie service — which offers high quality streams of first-run movies at a la carte pricing — we commented on the potential of the deal. As Mashable‘s Adam Ostrow wrote in February, the deal “puts Walmart head-to-head with the likes of Netflix and Amazon. But also, Walmart is a huge retailer of televisions — it has the ability to drive sales of Internet-connected TVs with Vudu on board.”
Both scenarios have seemed to work out exactly this way. In fact, since including Vudu in our roundup of media streaming services back in February, Vudu has come to an increasing number of connected TVs, set-top boxes and Blu-ray players. Earlier this month, Vudu even became available on the iPad, using HTML5 to bypass the need to use the App Store distribution platform.
Why Has Vudu Succeeded?
As a company, Walmart hardly has the best track record when it comes to digital initiatives. The company recently pulled the plug on its MP3 music store. As the WSJ notes, the company has also failed to capitalize on its brick and mortar retail success when it comes to Internet sales.
Before acquiring Vudu, Walmart unsuccessfully tried to launch its own DVD-by-mail business and a movie download service. So why has Vudu been different?
For one thing, Vudu doesn’t advertise its Walmart affiliations. The only part of Vudu’s website that even appears to show off the parent company is the section that lets users find compatible Blu-ray players, TV sets or game consoles. Even then, Amazon.com and Best Buy are also listed as buying options for supported devices.
Vudu’s biggest differentiator against the competition, however, is its quality. As I said back in February, “from a quality standpoint, Vudu is unmatched. HDX rentals really blow the boundaries of what one expects from a streaming service.”
This remains true. Vudu also consistently has one of the strongest libraries of first-run and new release content. And, like Netflix, Vudu has benefited from working with lots of different device makers to support its service.
The big question that some analysts are asking is, “How does Vudu tie into Walmart’s core business?” Frankly, we’re not sure if that even matters right now. For the moment, Vudu is the first digital offering that Walmart has that actually is gaining customer support.
Do you use Vudu? Let us know your thoughts on the service in the comments.
More About: Movies, video streaming, vudu, WalMartFor more Tech & Gadgets coverage:Follow Mashable Tech & Gadgets on TwitterBecome a Fan on FacebookSubscribe to the Tech & Gadgets channelDownload our free apps for Android, Mac, iPhone and iPad
Posted on Mon, 29 Aug 2011 17:55:12 +0000 at http://feeds.mashable.com/~r/Mashable/~3/vZ5zJLYeK0k/
Comments: http://mashable.com/2011/08/29/vudu-walmart-success/#comments
According to a recent report from IHS Screen Digest Media Research, Vudu has eclipsed both Amazon and the Sony PlayStation Store in the U.S. online movie store rankings.
During the first half of 2010, Vudu accounted for just 1% of the online movie market, based on revenue percentage. For the first half of 2011, Vudu had 5.3% of the market, putting it in third place after behemoth iTunes and Microsoft’s Zune Video Marketplace.
The Wall Street Journal sums it up best, writing “Vudu could become Wal-Mart’s biggest Internet-related success to date‚ although that doesn’t say much.”
When Walmart first acquired the online movie service — which offers high quality streams of first-run movies at a la carte pricing — we commented on the potential of the deal. As Mashable‘s Adam Ostrow wrote in February, the deal “puts Walmart head-to-head with the likes of Netflix and Amazon. But also, Walmart is a huge retailer of televisions — it has the ability to drive sales of Internet-connected TVs with Vudu on board.”
Both scenarios have seemed to work out exactly this way. In fact, since including Vudu in our roundup of media streaming services back in February, Vudu has come to an increasing number of connected TVs, set-top boxes and Blu-ray players. Earlier this month, Vudu even became available on the iPad, using HTML5 to bypass the need to use the App Store distribution platform.
Why Has Vudu Succeeded?
As a company, Walmart hardly has the best track record when it comes to digital initiatives. The company recently pulled the plug on its MP3 music store. As the WSJ notes, the company has also failed to capitalize on its brick and mortar retail success when it comes to Internet sales.
Before acquiring Vudu, Walmart unsuccessfully tried to launch its own DVD-by-mail business and a movie download service. So why has Vudu been different?
For one thing, Vudu doesn’t advertise its Walmart affiliations. The only part of Vudu’s website that even appears to show off the parent company is the section that lets users find compatible Blu-ray players, TV sets or game consoles. Even then, Amazon.com and Best Buy are also listed as buying options for supported devices.
Vudu’s biggest differentiator against the competition, however, is its quality. As I said back in February, “from a quality standpoint, Vudu is unmatched. HDX rentals really blow the boundaries of what one expects from a streaming service.”
This remains true. Vudu also consistently has one of the strongest libraries of first-run and new release content. And, like Netflix, Vudu has benefited from working with lots of different device makers to support its service.
The big question that some analysts are asking is, “How does Vudu tie into Walmart’s core business?” Frankly, we’re not sure if that even matters right now. For the moment, Vudu is the first digital offering that Walmart has that actually is gaining customer support.
Do you use Vudu? Let us know your thoughts on the service in the comments.
More About: Movies, video streaming, vudu, WalMartFor more Tech & Gadgets coverage:Follow Mashable Tech & Gadgets on TwitterBecome a Fan on FacebookSubscribe to the Tech & Gadgets channelDownload our free apps for Android, Mac, iPhone and iPad
Posted on Mon, 29 Aug 2011 17:55:12 +0000 at http://feeds.mashable.com/~r/Mashable/~3/vZ5zJLYeK0k/
Comments: http://mashable.com/2011/08/29/vudu-walmart-success/#comments