Now That Vudu Is in Comcast's Hands, the TVOD Experiment Is Just About Over

The basic premise made enough sense. Comcast (NASDAQ: CMCSA) is preparing to make a big splash in the streaming video market. Vudu was a streaming platform that arguably wasn't getting the direction it needed from parent Walmart. So, if Comcast could acquire Vudu for the right price, why wouldn't it?

The answer to the question comes to light with a closer look at both businesses. While we don't yet know the price, we do have a good idea why Comcast's Fandango unit agreed to acquire Vudu earlier this month. While Comcast's soon-to-be-launched Peacock service is subscription-based, Vudu is primarily a sales and rental platform meant to let consumers pick -- and pay for -- specific movies and TV shows. The site does offer some ad-supported entertainment, like Peacock, but it's hardly Vudu's core business.

We are now entering a sliver of the on-demand video market that's received little attention. Subscriptions paved the way, and free ad-supported video has been all the rage of late. But actually buying or renting by the movie or show? Nobody's quite sure what to make of it. That's why Comcast's control of Vudu could finally make or break the business model.

Source Fool.com