Harry Potter: The Chamber of Commerce

Several years ago, Wal-Mart tried its hand in the DVD-by-mail rental service that Netflix ruled.  Netflix won and juggernaut Wal-Mart lost, eventually selling off their rental DVDs at fire-sale prices and quietly exiting the business in 2010.

This morning it’s Round Two.

Earlier today, Wal-Mart began leveraging its earlier purchase of video-streaming service Vudu.com on its own website, giving plenty of new exposure to the online service that offers rentals of movies and television shows, often on the same day they are released to the DVD retail market.

Vudu has continued under its own banner ever since Wal-Mart acquired the company 18 months ago, but few Wal-Mart customers have heard of the service.

By integrating Vudu into Wal-Mart’s own website, browse-by traffic should bring plenty of new customers to the venture.  At least 20,000 titles are available from the outset, playable on a variety of devices.

Rental prices range from a $1-6, but customers can also purchase digital copies for $4.99 and up.  Regular discount offers and promotional codes often deliver substantial discounts, and new customers can enjoy a free trial.

The service’s obvious challenger is, once again, Netflix.  While Vudu doesn’t offer a flat rate viewing plan, they do deliver a substantially larger selection of 1080p HD movies than Netflix offers for streaming.  But they come at a higher price.

For example, Harry Potter and the Deathly Hallows: Part 1 is available on Vudu in standard definition for a rental fee of $3.99.  HD runs a dollar more; HDX a dollar more still.  Customers can buy a copy of the film for $14.99.

Redbox in comparison will rent the same film to you for $1-1.50, depending on the version, per day.  Amazon.com charges $3.99 for online rentals, or buy the DVD from them for $13.99.