Wal-Mart cancels movie download service

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Wal-Mart Stores Inc quietly canceled its online video download service less than a year after the site went live, a company spokeswoman said on Thursday. Wal-Mart shut down the download site after Hewlett Packard Co discontinued the technology that powered it, Walmart.com spokeswoman Amy Colella said in an e-mail. She added that it will not look for another technology partner.

HP spokesman Hector Marinez said the company decided to discontinue its video download-only merchant store services because the market for paid video downloads did not perform “as expected.” He noted that the Internet video business remains uncertain and is changing rapidly. Wal-Mart will continue offering physical DVDs for sale at its stores and online, but would not continue the online downloads business, said Colella, who declined to disclose the number of downloads sold on the site.

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