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 . Last year, Walmart reportedly said it would under Vudu, but those plans ultimately fizzled out because doing so would've been too expensive, sources told The Information.