They started by attempting to jump into MP3 sales with an iTunes like setup of their own.  It didn’t work out so well.  They gave online video distribution a shot too, but their effort was met with the same fate.  Their newest venture into online distribution though, may end up being the one that makes Walmart a serious contender.

Walmart is all set to buy the as of yet unprofitable Vudu streaming service.  While Vudu itself isn’t turning a profit, things were looking good for 2010.  Vudu has been added to a wide range of televisions and Blu-ray players, which means there’s no need to buy additional boxes – something that has held many consumers back.

The assumption is that Walmart will use the service not only to encroach into the digital domain, but to advertise and sell directly to consumers.  Offering customers the option to buy merchandise directly from their TVs might be too much of a lure to resist.