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Walmart could sell its on-demand video service Vudu, report says

The retailer feels the service isn't core to its business, according to The Information.

Walmart may be letting go of its Vudu on-demand video service.
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Walmart may be thinking of selling its on-demand video service Vudu, according to a Wednesday report. The retailer has found it would have to heavily invest in the business to compete in a sector dominated by the likes of Netflix and Amazon Prime, The Information reports. In addition, Walmart reportedly feels Vudu "isn't core to its business."  

While subscription video-streaming services like Netflix allow users to watch unlimited content for a flat fee, Vudu is a platform where customers rent or purchase individual shows or movies. 

Walmart has found it may be better to offer content by partnering with media companies, a person familiar with the matter told The Information. Walmart reportedly purchased Vudu, which was founded in 2004, for around $100 million in 2010.

A Walmart representative declined to comment specifically on reports of a Vudu sale.

"Over the last nine years, we've built Vudu into an incredibly strong and growing business with an installed base of more than 100M+ devices across America," the representative said in an email. "We're constantly having and open to conversations with new and existing partners to explore opportunities for continued growth; however, we never share details of those discussions."

The video service sector is becoming increasingly crowded and competitive as companies like Apple and Disney launch their own streaming services. Last year, Walmart reportedly said it would launch its own Netflix rival under Vudu, but those plans ultimately fizzled out because doing so would've been too expensive, sources told The Information.