Walmart Déjà Vudu
By David Dorf on Feb 22, 2010
If this is about competing with Netflix and RedBox, then Walmart is doomed to failure for all the same reasons their foray into DVD-rentals-by-mail failed. I've seen first hand what happens when retailers try to create brand new products. Circuit City found that negotiating with product vendors does not translate to dealing with movie studios and lost millions on Divx, their alternative to video rentals.
But then again, maybe Walmart's long-term strategy is to ensure they can beam their message, what ever that is, into millions of homes. Including a 30 second Walmart commercial at the start of every movie in exchange for a reduced monthly subscription is viable, and so is creating a Walmart channel that offers product demonstrations and promotions. If that's the case, then Walmart is brilliant for their forward thinking. Of course only time will tell.