Kai Clarke

Wal-Mart Hopes Third Time a Charm in Movie Rentals

February 23, 2010

FROM RETAILWIRE:
Back in 2005, Wal-Mart Stores decided its venture to rent movies online wasn't going where it wanted. In 2007, the retailer took another shot at the movie rental business using a download service...Now, Wal-Mart is hoping the third time's a charm with the acquisition of Vudu.... Will Wal-Mart Stores' purchase of Vudu make it a force in the movie rental business?      [more...]

This is a great idea by Wal-Mart. However, it needs to tone down the cost in order to gain true traction with their key teams. The numbers of their audience that will pay $19.99 for a movie will be limited. $9.99 for a movie makes better sense, and fits in the framework of the average Wal-Mart customer, while allowing for Wal-Mart to flex its low-price purchase (and retailing) muscle. Offering online options at very aggressive prices will move Wal-Mart into an innovative retailer, rather than just a low-price leader.