Walmart and Ultraviolet Team Up to Send Your DVDs to the Cloud -- For a Price

The Hollywood consortium Ultraviolet is teaming up with Walmart to convert customers' DVD and Blu-ray movies into digital copies through the streaming service Vudu. Just be prepared to pay a steep price for the privilege if you've got a big movie collection.

Each DVD conversion costs $2 for a standard definition digital copy or $5 for high definition, and each Blu-ray conversion costs $2. Movies will be available for streaming on any Internet-connected device that supports Vudu, such as the Playstation 3, Xbox 360, desktop Web browsers, and the .

To convert a movie, users must bring their discs to a Walmart store starting on April 15. Users then create an account with Vudu, Walmart's streaming video service, and a store employee authorizes the digital copy.

Customers get to keep their discs, but as , it's not clear how Walmart will prevent multiple users from creating a digital copy with the same DVD or Blu-ray.

I've been since the consortium first formed in 2010, and this latest effort isn't doing much to help. In theory, Ultraviolet is supposed to be DRM that actually benefits the customer by making their movies convenient to access from anywhere. Unfortunately, the service keeps stumbling as it tries to get off the ground.

In this case, the cost of movie conversion is too expensive to perform in bulk. If you've got 50-movie DVD collection, you'd have to pay $100 to $250 to convert your entire library. The users with huge DVD or Blu-ray libraries are Hollywood's best customers, yet they're getting no special discounts or incentives to make digital copies of their movies.