This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Wal-Mart Taking on Netflix, Blockbuster

NEW YORK ( TheStreet) -- Wal-Mart (WMT - Get Report) is stepping up the competition in the movie rental business with the acquisition of Vudu.

The retail giant announced on Monday that it is buying Vudu, an online movie service that is built into high-definition television and Blu-ray players, according to the New York Times.

The terms of the agreement were not revealed.

While Wal-Mart has been the largest seller of DVDs, with this acquisition it is now encroaching on the domain of Netflix (NFLX - Get Report) and Blockbuster (BBI).

Netflix has become the golden child of the DVD rental/streaming business, as it continues to steal market share away from traditional movie-rental retailers like Blockbuster.

Last week, Blockbuster said it is attempting to cut its overall number of stores, and the amount it pays in rent for those stores. Standard & Poor's cut its rating on the company to deeply distressed, and said Blockbuster is vulnerable to debt default.

Still, shares of Blockbuster are recovering this week, up 7% to 40 cents in afternoon trading.

Shares of Netflix are falling 2.8% to $64.84 on the news.

There has also been increasing competition from Coinstar's (CSTR) Redbox kiosks.

The purchase of Vudu may also present Wal-Mart with the opportunity to sell other products through televisions in the future.

-- Reported by Jeanine Poggi in New York.

Follow on Twitter and become a fan on Facebook.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
NFLX $109.81 -3.20%
WMT $66.79 -0.21%
AAPL $112.08 0.43%
FB $94.45 0.20%
GOOG $654.48 1.20%


Chart of I:DJI
DOW 17,129.01 -2.85 -0.02%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,812.92 -25.7230 -0.53%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs