Not entirely shocking news, but at least we now know that Wal-Mart will be shutting down the naughty bits section of the Vudu portfolio. The following letter was sent out to Vudu’s After Dark partners notifying them of the dissolution of their naughty bits agreement.
Dear VUDU After Dark Partner,
As you may have recently heard, VUDU was acquired by Wal-Mart. In conjunction with this acquisition we will be discontinuing the “After Dark” adult service over the coming days. Upon completion of the shutdown process, we will settle all accounts with you and ensure that you are paid the full amount you are owed under our existing agreement.
Attached to this agreement, please find a voluntary termination notice to our existing distribution agreement. As there has been no breach of contract by either party, there are no grounds to terminate the agreement under its existing terms. However, given the discontinuation of After Dark, we believe it makes sense for both sides to voluntary terminate the agreement. The alternative is to allow the agreement to expire under the existing terms, but we believe this is cleaner for all parties.
We ask that you complete, sign and return this termination notice at your earliest convenience. Please let me know if you have any questions.