DreamWorks & Wal-Mart Disc-to-Digital Launch

Dream­Works Ani­ma­tion SKG

Dream­Works Ani­ma­tion is part­ner­ing with Wal-Mart in rolling out a new disc-to-digital cloud movie ser­vice for consumers.

Dream­works is now the sixth Hol­ly­wood stu­dio to join with Wal-Mart, which will charge $2 to make a copy of a movie in the “cloud” that can be accessed from any com­pat­i­ble dig­i­tal device ($5 to con­vert the movie to high-definition). The Glen­dale stu­dio will make all of its pre­vi­ously released DVDs, includ­ing the “Shrek” and “Mada­gas­car” series and “How to Train Your Dragon,” avail­able for con­sumers to con­vert into dig­i­tal copies stored on Wal-Mart’s Vudu ser­vice. The ser­vice launched Mon­day in about 3,500 Wal-Mart stores across the U.S.

The lone hold­out among the major film com­pa­nies is Walt Dis­ney Stu­dios. How­ever Dream­Works is the first inde­pen­dent to take part — Lion­s­gate and The Wein­stein Co. are also not yet participating.

Get­ting as many stu­dios to par­tic­i­pate — and to offer as many of their movies as pos­si­ble — is crit­i­cal for Wal-Mart in grow­ing the ser­vice, which it hopes will help stem declin­ing rev­enue from DVD sales. The more movies from their shelves that they find they aren’t able to con­vert to dig­i­tal, the more dis­cour­aged poten­tial cus­tomers are likely to be.

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