Walmart has acquired Vudu, an also-ran video service that struggled to take off, for a reported $100 million in a cash transaction. Earlier rumors placed the deal price at $50 million just a couple of months ago, AllThingsD sources report. The company raised at least $21 million in funding from Benchmark Capital and Greylock Partners.

The reason why Walmart decided to acquire the company is because Vudu was able to convince the company of its proprietary video compression technology. Although the company’s set-top box business never took off, it did sign deals with TV manufacturers like Samsung and LG to provide thousands of movies at the touch of a button once the TV was connected to the Internet.

There were multiple bidders for the company, including Cisco. Walmart and Vudu has started notifying Hollywood studios of the deal, and Walmart is expected to enter the media streaming business, presumably with more leverage, since the retail giant sells more DVDs than any other company, making it a favorite for studios that still rely on physical DVD sales for majority of their revenue.