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.