Register

I agree with the Privacy Policy

Tekrati

Walmart to Purchase VUDU: News Analysis by Parks Associates

February 22, 2010

Tekrati After abandoning its initial online video plans in late 2007, Walmart has returned to this market with the announced acquisition of VUDU on February 22. With Best Buy working with Roxio CinemaNow, will Walmart leverage the VUDU acquisition to develop its own branded connected CE products? "Walmart is re-entering the OTT (over-the-top) market at an opportune time," said Kurt Scherf, Vice President, Principal Analyst, Parks Associates. "Parks Associates' consumer research of online video services indicates that usage from paying users for movie rentals, movie downloads, and TV downloads has doubled between 2008 and 2009." Parks Associates forecasts that revenues for premium video rentals and downloads in the U.S. will grow from $2.3 billion in 2010 to $8.4 billion in 2014.

Given VUDU's recent efforts to transition from a hardware vendor providing set-top boxes to a backend service provider of OTT content for connected CE devices, Parks Associates believes that this acquisition is an opportunity for Walmart to become a "category catalyst" in connected consumer electronics. VUDU currently is working with such CE vendors as LG, Mitsubishi, Samsung, SANYO, Sharp, Toshiba, and VIZIO.

Parks Associates projects that by 2014, more than 40% of transactional revenues for premium online video services will be through connected devices such as connected TVs, Blu-ray players, game consoles, and networked digital media set-top boxes. The presence of Walmart, with its retail muscle now in the online video space, could mean significant growth in the number and availability of Web-enabled consumer electronics products.

From the article, "Walmart to Purchase VUDU: News Analysis by Parks Associates"

Previously In The News

Middleware Solutions Needed for Multimedia Home Networks, Says Parks Associates

According to Unifying Home Media Platforms & Content, a forthcoming Parks Associates report dedicated to the middleware/software market in consumer entertainment, 39 percent of U.S. Internet househo...

Media Adapter Companies Missing Their Market, Says Parks Associates

Parks Associates says technology companies developing digital media adapters (DMAs) made a gross miscalculation by assuming high ownership of home networks--and, in particular, wireless networks--wi...

Parks Packs On-demand Digital Entertainment Executive Seminar Agenda

Parks Associates announced initial the initial agenda, panelists, roundtable leaders, keynote speakers and sponsors for its upcoming executive seminar, "Fall Focus: On-Demand Demand Digital Entertai...

Parks Associates Brings Digital Home Insights to TECHXNY Event

“Parks Associates’ workshop and interactive panels are a perfect complement to the conference,” said Christina Condos, show director, TECHXNY. “I am confident that their presentations will be of gre...

‹
1
2
3
4
›