CNet reports that Walmart is considering the sale of its Vudu on-demand video streaming business, which it acquired in 2010 for about $100 million.
The reason? According to the story, "The retailer has found it would have to heavily invest in the business to compete in a sector dominated by the likes of Netflix and Amazon Prime … Walmart reportedly feels Vudu 'isn't core to its business'."
Walmart is not commenting on the possible sale.
The reason? According to the story, "The retailer has found it would have to heavily invest in the business to compete in a sector dominated by the likes of Netflix and Amazon Prime … Walmart reportedly feels Vudu 'isn't core to its business'."
Walmart is not commenting on the possible sale.
- KC's View:
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Once again, it appears that Walmart is engaged in the sale - or at least, the consideration of the sale - of non-core businesses. This is not as criticism - just an observation.
But … it illustrates, I believe, a core difference between Walmart and Amazon.
Walmart is a retailer. Always will be. It is core to its identity, vision and operations.
Amazon, not so much. Sure, retailing is important to its business model, but it also is focused on a wide range of other sectors - from web services to video streaming - that quite literally create an ecosystem that envelops its customers. It just sees the world differently than almost every other retailing entity.
This could be an advantage. Might even end up being a weakness at some point (though I wouldn't bet on it.) But it is a fundamental difference, and needs to be factored into every analysis of these companies.
