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Wal-Mart reportedly preparing new video download service

14 January 2008 23:03 by Rich "vurbal" Fiscus | 8 comments

Despite shutting down its first attempt at a video download service in December, after less than a year of operation, Wal-Mart already appears to be working on a replacement. Unlike the previous attempt, which relied on services provided by Hewlett-Packard (HP) to deliver the video, this time the world's largest retailer looks to be striking out on their own.

No doubt the decision by Wal-Mart executives to set up their own delivery system was at least influenced by the fate of the earlier venture. The reason for making such an early exit the first time around was HP's decision to get out of the business entirely, leaving Wal-Mart without a distribution channel. HP's official statement on the matter said �the market for paid video downloads has not performed as expected, and the broader internet video space continues to remain highly dynamic and uncertain.�

That uncertainty apparently isn't as worrisome to Wal-Mart. According to Multichannel News, Microsoft representatives took advantage of last week's Consumer Electronics Show (CES) to research the technology required to provide movie downloads that can be burned onto DVD.

In addition, although the online store has been shut down, Wal-Mart has continued to supply the online licensing service required for the files' DRM to allow playback through Windows Media Player.

Permalink to this article | Topic: Online video

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Discuss this article!
mspurloc (Member) 15 January 2008 12:02
Because music worked out so well for them? [ + quote]
7thsinger (AfterDawn Addict) 16 January 2008 10:00
Music failed for them. Their previous attempt at a video download service was as short lived as Lindsey Lohan's sobriety. So why put themselves back out there when the competition is almost sure to blow them away? [ + quote]
windsong (Junior Member) 17 January 2008 0:59
They cant compete with free. [ + quote]
tucker001 (Member) 17 January 2008 10:47
wal-mart is for redneCCs [ + quote]
mspurloc (Member) 17 January 2008 16:01
*Originally posted by 7thsinger:* Music failed for them. Their previous attempt at a video download service was as short lived as Lindsey Lohan's sobriety. So why put themselves back out there when the competition is almost sure to blow them away? Precisely. The profit margin is miniscule on video downloads, unless you have a subscriber base. They'll find that out soon enough. [ + quote]
7thsinger (AfterDawn Addict) 17 January 2008 16:11
You think they'd have learned that the first time. My life never began with "once upon a time" so why would i expect it to end with "happily ever after"? [ + quote]
yimmmy (Senior Member) 17 January 2008 19:19
yea i went in the wall mart near here the other day and i seen a machine that you could rent videos out of it was a dollar a day and you had to use your cc tho. xbox v 1.6 softmodded unleash x 250 segate... Playstation 3 40 gig.. ps tag= yimmmy ... pc.>amd opterion 64.>ati 2400 pro hd>150 wd raptor>500gig segate>dual hanns g 19in wide..>OSwindows xp home.Ubuntufeisty. lappy.>amd truion 64 x2 5600m>80 gig seagate>ati radeon xpress 1150>OS windows xp Home Server.>amd sempron 32bit.>512 mbs memory >40 gighdd>OS ubuntu server edition. http://i261.photobucket.com/albums/ii44/Y1MMMY/Yimmmysig1copy.jpg [ + quote]
borhan9 (AfterDawn Addict) 14 February 2008 21:56
Lets jump on the bandwagon again. :P [ + quote]