Omnipresent brick-and-mortar retail chain Walmart has just launched a video streaming service on its website. The service is powered by Vudu, a digital video company that Walmart acquired over a year ago. Unlike Netflix, Vudu is not a subscription service and instead charges users for individual streaming rentals or purchases. Prices range from $1-$5.99 for rentals, with purchases starting at $4.99.

Though Vudu has been around for a while, its launch directly on Walmart’s website opens a new chapter for the service. It is also the surest signal that Walmart, a juggernaut DVD retailer, wants a piece of the streaming video pie. It’s possible that the company might not see optical media like DVDs and Blu-rays as the sure bet they once were, and is seeking to diversify its stock.

The long saga of Blockbuster’s bankruptcy looks like it has come to an end with the announcement that Dish Network would be buying the troubled retailer for roughly $228 million in cash after adjustments. Bidding on Blockbuster reportedly extended into the early hours of this morning, with investor Carl Icahn trailing just behind Dish Network’s ultimately successful bid.

So what’s likely to come of this? Promotional tie-ins, for one: In Dish Network’s press release, company EVP Tom Cullen said that “With its more than 1,700 store locations, a highly recognizable brand and multiple methods of delivery, Blockbuster will complement our existing video offerings while presenting cross-marketing and service extension opportunities for DISH Network.” But using retail locations to hawk Dish Network subscriptions is just one piece of the puzzle: The other is Blockbuster’s Internet streaming rights from major Hollywood studios. An analyst writes:

As part of an acquisition, DISH would presumably get Blockbuster’s Internet streaming rights, the Blockbuster brand and its customer lists. Combined with a build-out of the wireless spectrum it has acquired and technology from EchoStar and Hughes, we believe DISH could launch an on demand movie service that would 1) significantly enhance the competitive offering of the DISH Network, and 2) compete on a standalone basis with Netflix and other over-the-top video services.

Could a Dish-resuscitated Blockbuster resurge as a Netflix competitor? Stranger things have happened. In any event, this is a more interesting outcome than Blockbuster being bought by creditors who wanted to pick its bones dry, and potentially more beneficial for consumers as well.

(h/t CNET)

Looks like those rumors about Blockbuster declaring bankruptcy in September were true. Today, the company announced that it has filed for Chapter 11 bankruptcy in an effort to stave off its more than 1 billion dollars in debt. Blockbuster promises that its stores will continue serving customers, however.

All of Blockbuster’s U.S. operations, including its stores, DVD vending kiosks, by-mail and digital businesses, are open and serving customers in the normal course. Blockbuster is fulfilling all orders as usual, including continuing to provide access to new releases the first day they become available. Blockbuster intends to continue honoring its Rewards program, valid coupons, gift cards and other customer programs.

Blockbuster franchise locations in both the U.S. and abroad are independently owned, operated and funded, and are also continuing normal business operations. In addition, BLOCKBUSTER Express vending kiosks, owned and operated through a relationship with NCR, continue their operations in retail locations around the U.S. The Company’s international operations in Canada, Denmark, Italy, Mexico, and the United Kingdom are also conducting business as usual. However, Blockbuster will no longer provide funding to support its operations in Argentina, which have experienced continued shortfalls in operating cash flow.

According to The LA Times, Blockbuster and its biggest debtors have already discussed their plans to declare bankruptcy by mid-September with Fox, Paramount, Sony, Universal, Disney and Warner Bros.

Blockbuster has lost a total of $1.1 billion since the beginning of 2008 and has been severely hamstrung in efforts to grow its business due to interest payments on $920 million in debt. Earlier this month the company announced that most of its debt holders had agreed to a forbearance on interest payments until Sept. 30, during which time it would attempt a recapitalization.

Blockbuster’s bankruptcy looks like it’s going to be something of a tangled mess of retail vs. Hollywood vs. digital connections.

Blockbuster has released details on its new Games by Mail service.  Subscribers to Blockbuster Online will be able to rent one game at a time, for the extra monthly price of $7.99.  Any game rented will count against whatever your limit of discs out-at-a-time is, based on your plan.  If you don’t rent a game in a given month, you won’t be charged the $8.

Games will only be available for the Wii, PS2, PS3, and XBox 360; so no handhelds, and no classic titles (well, I guess the PS2 is a classic title).

While this is certainly a better price than Gamefly (more than $16/month for a 1-game-at-a-time plan), it’s sort of a dubious deal if you don’t have a subscription to a by-mail game rental service.

Yesterday, The Consumerist talked with the Vice President of Netflix Corporate Communications, Steve Swasey, and asked him if Netflix would ever consider offering video games by mail, as its biggest rival Blockbuster seems to be considering. Swasey answered in the negative:

Video games are a different economic model than movies and TV episodes, on which Netflix concentrates to provide the greatest convenience, selection and value to consumers… Movies are perennial. A great movie from 1972 is still a great movie but who wants to play Madden ’95?

So… you’re backing up your claim that video games are not perennial by bringing up a franchise that is released yearly? Of course the Madden games aren’t perennial! I don’t imagine many people have Dr. Jekyll y el Hombre Lobo (1972) in their queues, and I’m sure Netflix has a correspondingly low number of discs in stock. We’re not asking you to keep a billion copies of Madden ’95, just maybe some of Warcraft III, or Smash Bros Brawl, or Ico.

Setting aside the poor argument Swasey presents, here’s why Netflix should seriously consider getting into video game rental: It is estimated that Netflix will gain 2 million new subscribers from consoles alone in the next year. That’s half of their projected subscriber growth for 2010.

After years of going up against the likes of Netflix, Redbox, and internet piracy – tough competition that is only getting tougher – Blockbuster may be voluntarily declaring bankruptcy.

From The Hollywood Reporter:

The once-mighty video chain, which reported a fourth quarter net loss of $434.9 million, has been trying to diversify into new distribution channels as rentals and sales at its 6,500 stores worldwide continue to dwindle.

Apparently, Blockbuster is about $1 billion in debt: