Wal-Mart might be looking at expanding their empire into a different direction. Sources are telling us that a deal has been brokered for the retailer to purchase VUDU. With the potential purchase of VUDU, it would place Wal-Mart in the streaming business.

The decision could be a very smart move by the company, who is already one of the largest retailers of DVD and Blu-ray movies. The whispers suggest that Wal-Mart could use this leverage to perhaps work with the movie studios to gain access to even more titles that the company could offer via its streaming platform. Currently, VUDU has an estimated 3,000 titles in its library and a deal with Wal-Mart should lead to the some serious expansion to that number.

Most recently, VUDU has been able to ink deals with a variety of manufacturers, including some of the biggest names in the electronics business. These deals are to offer VUDU’s streaming player interface and technology to be incorporated into a variety of products such as TV and Blu-ray players. Of course, this makes the decision for Wal-Mart to acquire VUDU even more attractive, as the company already has deals in place. It would be likely that a purchase by Wal-Mart could see the VUDU standalone player return; as with Wal-Mart’s resources and marketing, it would be possible to lower the cost and increase the upside for the consumer.

It will be hard to gauge the impact of this deal to competitors such as Amazon and Netflix until the deal closes, and a Wal-Mart takeover is completed. We have to think that the move by Wal-Mart to become a major player in the streaming entertainment business is a good addition for the company and an excellent way to branch out from typical retail. Our sources tell us that we should be hearing more soon, but till then you have to chalk this one up as strictly rumor at the moment.