Posted on | July 26, 2011 | Comments Off
Many people didn’t know that Walmart (WMT) owns Vudu the video streaming service. Walmart has made some moves recently and it’s pretty well timed considering some of the additional headlines going on with Netflix (NFLX) these days.
Walmart has fully integrated its Vudu product into Walmart.com – a heavily trafficked site – to allow users to stream movies straight from Walmart.com. When browsing movies and DVDs on Walmart.com you can see options to buy the physical DVD or stream the movie instantly. It offers a range of pricing options and viewing options.
Interestingly, Netflix has been in the news recently with regards to the expected higher costs they will incur with their increased subscriber base. The stock (which has been very hot for a while now) has taken a haircut on the news that it will impact future subscriber growth. When it comes to minimizing costs, Walmart is pretty good at it, so I like their moves in this space.
Even more importantly, this is another example of Walmart’s commitment to multi-channel retail that you will see all over the world in many markets. Walmart is moving full steam ahead when it comes to offering products through brick-and-mortar as well as ecommerce. You can read more on the multi-channel plans here.
Walmart continues to be stuck in its trading range for the most part. I’m completely ok waiting – years if I need to – for Walmart to break to the upside. When it does, it should be substantial, and until then, I’ll collect more dividends.