VUDU is a media server and download service that allows consumers to download their movies, television and other content directly into their home theater without the need for discs. VUDU carved out its early niche in the streaming download business because of its "Adult Channel". Since being bought by Wal-Mart, those enthusiasts have less to be "excited" about. VUDU does boast as high as 1080p video which is rare in the download world at this time.

VUDU interfaces with their own player/hardware as well as devices such as Sony's Playstation 3 game console.

VUDU competes directly with the likes of CinemaNow, Netflix, Blockbuster and even in many ways Google's YouTube. Some argue VUDU also competes with the likes of digital cable providers and satellite providers like DirecTV and Dish Network.