Wal-Mart may be considering selling its video-on-demand service Vudu, foreign media reported. The retailer has found that it has to invest heavily to compete in industries such as Netflix and Amazon Prime, but in Wal-Mart’s own view, Vudu is not its core business. In other words, it doesn’t have to invest too much in it.
Subscription video streaming services such as Netflix are known to allow users to watch unlimited content for a fixed fee, but Vudu requires users to rent or buy individual shows or movies.
In addition, according to people familiar with the matter, Wal-Mart found it better to provide content through cooperation with media companies. Wal-Mart bought Vudu, founded in 2004, in 2010 for about $100 million.
Wal-Mart declined to respond to the report.
With big companies such as Apple and Disney, the video services industry is becoming more crowded and more competitive. Wal-Mart said last year that it would launch its Netflix rival under Vudu, but apparently the plan ended in failure because it was too expensive, the sources said.