Wal-mart and Movies in the Cloud



This past week Wal-Mart announced exclusive disk to digital service using Vudu. The way it works is the consumer would bring down his or her DVDs or Blu-ray discs to their local Wal-Mart. Wal-Mart would then create a digital copy of that disc on Vudu.  Vudu is a content delivery network which is available through over 300 devices including PlayStation 3 and Xbox 360. This is the first attempt to introduce the UltraViolet system to the public on a large-scale. The Ultraviolet system works like a locker in the cloud . It was created in 2008 by most major Hollywood studios and their partners . Consumers store the digital rights to the DVDs they own in this locker. They then can watch the movie on any device that carries Vudu. The UltraViolet system can handle a multiple number of DRM technologies, which Hollywood continues to support. However so far consumers have not looked favorably upon the UltraViolet system so this is the first really big test to see if this system can work or not.

I see several problems with this system the first is that you physically have to bring your DVDs or Blu-ray disc down to local Wal-Mart and stand in line, how many people are going to do this. The second is it does not work with all movies in fact any movie distributed by Disney cannot be added. Disney is not a part of the UltraViolet consortium. Third you can’t watch the movie on a iPad or iPhone,(except in the Safari browser) remember Steve Jobs was on the Disney board and iTunes is a competitor to Vudu.  Fourth you are putting it in a locker that someone else controls, Which means at any time they can change the combination or take away the key or close the whole system down and you have no say in it. Also you don’t get any of the extras and no subtitles on English films. Fifth most movies especially older ones are already available through other means such as Netflix or Amazon or iTunes often at a cheaper rate. Sixth if you want to watch the movie on your computer it will be in standard definition, not full HD. Finally most sophisticated users already have ways to rip their DVD’s without having to carry them down to the local Wal-Mart and stand in line. I will be surprise if this is successful, sophisticated tech users will not use it and normal will not understand or trust it. I wonder if Wal-Mart will offer this automatically when you purchase a new DVD or BLu Ray, that may help add to its popularity.  Will you use this system, will your parents, or is dead before it gets off the ground?