The idea of a Walmart video streaming service (NYSE:WMT) may have sounded like a win to some considering how successful these types of services are, but the company has scrapped the idea.
The retailer announced that the it decided to not carry on with the idea of a video streaming service after talks with Mark Greenberg, who is a veteran executive in the media industry, fell through last year. This was reported by people who are close to the matter but decided to remain anonymous because the discussions were private.
While the Walmart video streaming service will no longer happen, the retailer said it will focus on expanding its reach with Vudu, a video service that it bought back in 2010. The service offers a number of moves and shows for free with ads, as well as videos that you can purchase with the goal of renting or owning them.
“Vudu has developed a strong platform, and we aim to continue to bring our customers more content, on more devices, at the best possible price,” Tara Raddohl-House, a Walmart spokeswoman, said in an email.
The move makes sense for the retailer considering how crowded the video streaming industry has gotten and how difficult it can be to get a new service to become as competitive as the likes of Netflix and Amazon Prime Video.
WMT stock is up about 0.4% on Thursday.