Wal-Mart is all set to enter the market of online video streaming. The behemoth is in talks to buy the VUDU, an on-demand video service that sells and rents movies and TV shows over the Internet.

VUDU is one of several online movie services which has fair amount of rivals including Netflix, Amazon's video on-demand and Apple TV/ iTunes. Best Buy and Blockbuster, both of which have teamed with online movie service Roxio CinemaNow are amongst few online players. It is a fact that Americans will prefer streaming of movies at internet rather than waiting for the discs of Netflix or any other player.

It is one of the finest steps taken by Wal-Mart as the broadband speed are likely to be increased at stupendous rates with latest news from the FCC it intents on having 100-megabit connections in American homes.

Wal-Mart is willing to bet on the opportunity where it integrates the VUDU software into Blu-ray players, Internet-connected HDTVs, and other media-streaming devices and would be retailing them at an affordable price. This is a step which is being feared by the other rivals of VUDU.