Walmart is getting ready to launch a Vudu-based Chromecast competitor

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The company is going to be releasing its own Chromecast-like streaming dongle that works with the Walmart-owned Vudu platform, according to a Federal Communications Commission filing.

The FCC filing, first spotted by GigaOm, lays out plans for a remote controlled device that connects to televisions via the HDMI port. The filing also contains photos and a user manual for the device, which suggests the Wi-Fi-connected Spark will function much like other streaming sticks, though it appears it will only be compatible with Vudu, and not other services such as Netflix or Hulu.

The front and back of the [b]Vudu.com/start[/b] Spark, as seen in the FCC filing. Credit: FCC

A Vudu spokesperson confirmed the plans for the Spark in a statement given to Mashable.

At VUDU, we’re always looking at new ways for our customers to experience the movies and TV shows in their VUDU library. We’re developing a streaming stick and will share more information in the coming months, so stay tuned.

The FCC filing did not reveal a price for the Spark, but it's likely the retailer will offer it at a price comparable to or less than the $35 Chromecast or $49 Roku Streaming Stick, given its more limited functionality.

Streaming dongles, which are smaller and typically cheaper than set-top boxes, are becoming increasingly popular. Google, Roku and Amazon each offers its own HDMI-conencted device.

Entertainment startup Matchstick launched a Kickstarter earlier this year to create its own Firefox OS-powered streaming stick that netted nearly a half million dollars-- topping its initial goal by more than $300,000.

According to a recent report from IHS Screen Digest Media Research, Vudu has eclipsed both Amazon and the Sony PlayStation Store in the U.S. online movie store rankings.

During the first half of 2010, Vudu accounted for just 1% of the online movie market, based on revenue percentage. For the first half of 2011, Vudu had 5.3% of the market, putting it in third place after behemoth iTunes and Microsoft's Zune Video Marketplace.

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The Wall Street Journal sums it up best, writing "Vudu could become Wal-Mart's biggest Internet-related success to date‚ although that doesn't say much."

When Walmart first acquired the online movie service -- which offers high quality streams of first-run movies at a la carte pricing -- we commented on the potential of the deal. As Mashable's Adam Ostrow wrote in February, the deal "puts Walmart head-to-head with the likes of Netflix and Amazon. But also, Walmart is a huge retailer of televisions — it has the ability to drive sales of Internet-connected TVs with Vudu on board."

Both scenarios have seemed to work out exactly this way. In fact, since including Vudu in our roundup of media streaming services back in February, Vudu has come to an increasing number of connected TVs, set-top boxes and Blu-ray players. Earlier this month, Vudu even became available on the iPad, using HTML5 to bypass the need to use the App Store distribution platform.

Why Has [b]Vudu.com start code[/b] Succeeded?

As a company, Walmart hardly has the best track record when it comes to digital initiatives. The company recently pulled the plug on its MP3 music store. As the WSJ notes, the company has also failed to capitalize on its brick and mortar retail success when it comes to Internet sales.

Before acquiring Vudu, Walmart unsuccessfully tried to launch its own DVD-by-mail business and a movie download service. So why has Vudu been different?

For one thing, Vudu doesn't advertise its Walmart affiliations. The only part of Vudu's website that even appears to show off the parent company is the section that lets users find compatible Blu-ray players, TV sets or game consoles. Even then, Amazon.com and Best Buy are also listed as buying options for supported devices.

Vudu's biggest differentiator against the competition, however, is its quality. As I said back in February, "from a quality standpoint, Vudu is unmatched. HDX rentals really blow the boundaries of what one expects from a streaming service."

This remains true. Vudu also consistently has one of the strongest libraries of first-run and new release content. And, like Netflix, Vudu has benefited from working with lots of different device makers to support its service.

The big question that some analysts are asking is, "How does Vudu tie into Walmart's core business?" Frankly, we're not sure if that even matters right now. For the moment, Vudu is the first digital offering that Walmart has that actually is gaining customer support.