CES: Why Is Vudu Adding 3D Movies? Guess.

By Phillip Swann
TVPredictions.com

http://www.tvpredictions.com/vudu010711.htm


Washington, D.C. (January 7, 2011) -- Vudu, the movie streaming service, 
has its hands full trying to compete with other online services such as 
Netflix, Amazon and CinemaNow,

However, Vudu announced this week at the Consumer Electronics Show that 
it will add 3D movies to its impressive library of HD and SD films. The 
3D titles will be added next week.

The announcement caught some by surprise, considering that only about 
one million U.S. homes actually now own 3D sets. It would seem that Vudu 
would be smart to concentrate on providing HD and SD titles to 
effectively compete with its rivals, which, by the way, have not added 
3D to their lineups.

However, Vudu has a reason now to offer 3D when companies such as 
Netflix do not. That reason?

Wal-Mart, the discount retailer, purchased Vudu last February. And while 
it has not been widely publicized, Wal-Mart plans to start selling 3D 
sets in its stores this fall. The company initially planned to start 
selling 3D HDTVs in 2010, but it delayed the launch until 2011.

So Vudu's decision to rent 3D titles now has to be viewed in the light 
that its owner, Wal-Mart, will benefit from that move. The more Vudu 
viewers who become acquainted with 3D, the better the chances that 
Wal-Mart will be able to sell 3D sets this fall.

When Wal-Mart announced that it was buying Vudu, it signaled that the 
movie service could be used to help in-store sales. And now we're seeing 
evidence of that strategy in play.

-- 
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George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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