Wal-Mart quietly shut down its movie download service on December 21, 2007, about a year after launching it. The decision does not appear to be Wal-Mart’s alone though as its technology partner in the project, Hewlett-Packard, decided to discontinue the service as it did not perform “as expected.”
Those who purchased movies through the service will be allowed to keep them as long as they remain on the computer on which they were purchased (one more reason to hate DRM!).
Source: Engadget