Californiabased American animation studio
DreamWorks Animation SKG Inc.
(
DWA
) has joined retail giant
Wal-Mart Stores Inc.
(
WMT
) as its sixth major partner for its disc-to digital service,
thereby providing digital access to DreamWorks movies.
Walmart teamed up with five major Hollywood studios, as
announced in mid-March, to provide an in-store service to allow
consumers to convert DVDs and Blu-ray discs into digital movies.
The five studios were
Viacom Inc.
(
VIA
)'s Paramount Home Media Distribution,
Sony Corporation
(
SNE
)'s Sony Pictures Home Entertainment,
News Corp.
(
NWS
)'s Twentieth Century Fox Home Entertainment,
Comcast Corp.
(
CMCSA
)'s Universal Studios Home Entertainment and
Time Warner Inc.
(
TWX
)'s Warner Bros.
The company uses its Vudu video-streaming service to convert the
discs to digital service through the movie industry's UltraViolet
technology. The UltraViolet system, launched by Warner Bros.,
allows consumers to watch movies on multiple devices including
televisions, tablets, smartphones, gaming consoles and more.
Walmart offers this service at 3,500 of its stores at only $2
for the conversion of standard DVDs and Blu-ray discs and $5 for
any upgradation of standard DVDs to High-Definition.
People can now receive digital copies of their
previously-purchased DVDs or Blu-ray discs from any of the six
participating movie studios and permanently access them on
Walmart's Vudu online streaming service which works on UltraViolet
platform. However, The Walt Disney Co. does not operate on
UltraViolet technology and thus Wal-Mart's offer does not apply for
Disney or Pixar movies.
We believe this initiative is expected to boost Walmart's
lackluster movie sales which have been declining due to the
presence of other forms of entertainment and online alternatives.
With the digital access, customers are now able to reconnect with
movies anywhere on a variety of new devices. In addition, Walmart
will attract more movie fans with its wider collection after the
addition of DreamWorks movies like Shrek, Madagascar, Kung Fu Panda
and How to Train Your Dragon.
Walmart holds a Zacks #3 Rank implying a short-term Hold rating.
Over the long term, we provide a Neutral recommendation on the
stock.
COMCAST CORP A (
CMCSA
): Free Stock Analysis Report
DREAMWORKS ANIM (
DWA
): Free Stock Analysis Report
NEWS CORP INC (
NWS
): Free Stock Analysis Report
SONY CORP ADR (
SNE
): Free Stock Analysis Report
TIME WARNER INC (
TWX
): Free Stock Analysis Report
VIACOM INC-A (VIA): Free Stock Analysis Report
WAL-MART STORES (WMT): Free Stock Analysis
Report
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