Several bidders were willing to fork over $100 million for Vudu (as opposed to Netflix). So with Wal-Mart behind the distributor, this could be a game-changer, assuming everyone knows what they are doing. Here's Variety and the LAT:
The move is a bet by the retail giant, the largest seller of DVDs in the country, that consumers eventually are going to rely upon online services to watch movies rather than buy them from Wal-Mart or rent from Blockbuster. DVD sales have declined in recent years, forcing retailers and studios to look at digital distribution to make up the gap.
UPDATE: PC World's Jeff Bertolucci explains why Wal-Mart and Vudu want to enter world of video streaming.