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CNET News Video: Wal-Mart to offer digital movie content

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CNET News Video: Wal-Mart to offer digital movie content

1:35 /

Retail giant Wal-Mart announced a new plan on Tuesday for watching your favorite movies. Starting in April, customers can pay to transfer their DVDs to digital copies so they can watch those titles on multiple devices. CNET's Kara Tsuboi reports.

We're excited to announce the launch of Walmart Entertainment's Exclusive In-store Disc to Digital Service, powered by Vudu. Walmart, the largest retailer in the world has teamed up with five of six major movie studios to provide a digital version of movies that consumers can stream on multiple devices. Vudu will allow our customers to convert their physical DVD libraries to digital libraries. Here's how the plan would work. Customers would bring their actual DVDs from the 5 studios; Fox, Paramount, Sony, Universal and Warner Brothers, two of Walmart Photo Center. Once they open a free Vudu account to Walmart's web streaming service, they'll receive an access code for that specific title to stream through a wide variety of devices; smart phones, tablets, laptops, game consoles and more. I think it's an interesting deal between Walmart and the Studios. But I'm not sure if the other leg of the triangle, the consumers, is there. A standard conversion will cost $2 per disc and upgrade to the high definition version will cost $5. The fee structure, I... I think it's... It's a little bit high. It... It really is a way for the Studios to kind of take ownership of the license thing, and the redistribution of their content, followed at the same time, giving the consumers some measure of convenience for playing the... The film wherever they want. Analyst add, the deal benefits Hollywood Studios. They now have a big retail partner, embracing the New Cloud Technology, and Walmart is betting consumers, will do the same. In San Francisco, I'm Kara Tsuboi, CNET.com for CBS News.

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