Retailer Video, Music Services: Means to an End

Observers might wonder about whether Amazon or Apple can catch Netflix in the online video space. Others, including major retailers, seem be in a second tier, despite their other assets. Sears Holdings Corp. became the latest traditional retailer to get into streaming and downloads on Dec. 28, 2010, when it launched movie service Alphaline Entertainment.

That followed Best Buy Co.'s launch last year of rental and purchase site CinemaNow and Wal-Mart Stores Inc.'s acquisition of streaming service Vudu last February for roughly $100 million.

The retailers say the ventures not only help them gain a foothold in the fast-growing digital entertainment business, but also give them an edge in selling Internet-connected televisions and movie players in their stores.

As with some other players, online video is a means to an end.

Retailers' Video, Music Services Spin Wheels - WSJ.com (subscription required)