Vudu comes to the iPad, dodges Apple's 30% cut

Walmart couldn't compete with Apple (Nasdaq: AAPL) in the digital music business. Yesterday the company shut down its MP3 business, but it does see opportunity in teaming with the company, specifically on the iPad, on streaming video... sort of.

The retail giant today rolled out its Vudu video-streaming service on the iPad, but Walmart has managed to avoid paying the typical 30 percent revenue share to Apple by making its video-on-demand play an in-browser experience, said Vudu GM Edward Lichty. Vudu has optimized its website specifically for the iPad.

"It's not an app," said Lichty. "But you access it in a similar way."

Users can even add a Vudu icon to their home screen, making it a one-touch operation to get to the website.

The downside? Some content providers have imposed restrictions that limit playback on the iPad to SD quality. In addition some studios, most notably Disney, won't allow Vudu to deliver its content on the iPad.

The service offers 20,000 movie and TV titles that can be viewed on 300 devices, including connected TVs, Blue-ray players and the PS3.

"The economic advantage of not having to pay Apple 30 percent was a factor," Lichty told Reuters.

For more:
- see this Reuters report

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