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Vudu is Now Owned By Fandago Today but How Did Vudu Start And Why Did Walmart Buy It Only To Sell It

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  • Vudu is Now Owned By Fandago Today but How Did Vudu Start And Why Did Walmart Buy It Only To Sell It


    Today’s news is expected that someone bought VUDU.  Who would buy Vudu been a discussion for about a year now.

    Multiple companies had openly talked with Vudu about buying the service after Walmart lost interest because it would take to much money and effort to compete with Prime Video.  They tested free video to see how it would do, with some exclusives made for them they also made free.  The cost would be high and effort higher and now Walmart wants to focus on it’s core business and is selling Vudu to Fandango.

    So how did Walmart end up owning Vudu in the first place if they never took it seriously in their minds.  It in 2019 was a company worth over $100,000,000 and profitable but to Walmart this would qualify as a small side business.

    Walmart bought a hardware set top box called Vudu that was $399 retail before roku was heard of by anyone. It only did PPV and movie purchases, no apps at all, and unbelievably allowed you to stream movies and shows with no disc.  This was almost unheard of outside of cable on demand.

    It was almost unheard of at the time to stream anything (this was before netflix had streaming, and Youtube was very new) and with the $400 entry for a box and $20 per movie (or $6 per rental) back when you still had Blockbuster for $3.99 and Redbox had just shown up with $1 movies it barely moved many units but was profitable and Walmart bought it just because they sold TV’s and it had super high margins per movie rental.

    Likely they figured they could compete with Safeway’s/Von’s video rental store within a store if they needed too quickly and cheaply with this new service called Vudu. Then once Roku became popular they had Vudu simply make apps for other hardware and shut down the hardware except for a $25 streaming stick with only Vudu on it which was actually almost always free at walmart with a tv or after credits.

    Walmart never cared that much about Vudu, they even offered Redbox in store rather than doing it themselves and branding it Vudu for the promotion and additional leverage in obtaining the best content for Vudu at the best price.

    Now Fandango owns it and the future is currently still the same for Vudu.  Today Fandango announced they have no changes currently in store for Vudu customers or Fandango app customers either.  So only time will tell what will become of Fandango’s Vudu app.

    Click here for the full post including photos