Vudu, Walmart's streaming service, to be bought by Comcast-owned Fandango

Fandango dang sure isn't selling movie theater tickets anymore. And Walmart appears to be easing out of the video-on-demand business, and into… something else.

On Monday, Walmart's video-on-demand service Vudu announced it will be acquired by Fandango Media, the online movie ticketing service owned by beloathed cable and internet access behemoth Comcast.

Here's the official announcement on the Vudu Customer Help website: “Fandango to Purchase Vudu.”

From Reuters:

Walmart bought Vudu over a decade ago, but the service, which allows customers to either buy or rent movies and TV shows, still lags far behind the monthly viewership numbers that competitors Netflix Inc and Hulu pull in.

But Comcast is betting it can give the site a boost with Fandango, as the loss of cable TV subscribers forces it to focus its future around its internet business.

(…)Vudu, which also offers a free ad-supported streaming option, said here it will not be shutting down and will still operate separately from the FandangoNow pay-per-view service.

More at Reuters.

Observations from reporters and links to related early news coverage, below.