Is Wal-Mart Buying Vudu to belatedly catch up with Amazon?

Just after our discussions on Amazon and Sony, there comes an announcement that Wal-Mart is buying Vudu.  NY Times is reporting that the deal may be announced soon. This observation in the NY Times article is particularly interesting to think about.

Wal-Mart’s move is likely to give a lift to sales of Internet-ready televisions and disc players, which generally cost a few hundred dollars more than devices without such connections. These products allow people to watch movies and shows over the Internet, bypassing their traditional cable or satellite service.

The deal could also allow Wal-Mart to one day sell a variety of other merchandise through people’s televisions via the Vudu service. 

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Given Wal-Mart's scale and reach, this is potentially an important strategic move under convergence of industries. What's your assessment of this move--is Wal-Mart emulating Amazon?  Does Wal-Mart have the competencies required to be a key player in the digital space?

More broadly--what does it mean for Apple (iTunes), Amazon (video on demand), Google (YouTube) and Sony?