Blockbuster has been losing revenue to other movie providers like Netflix and Redbox for the last few years, and it’s about to have to take on an even bigger rival: Wal-Mart.

Wal-Mart already had a huge amount of Blockbuster’s retail sales when they began to offer low-price DVDs, but now they’re entering into the digital download market, and this may be the final nail in Blockbuster’s coffin.

The company is already reporting extremely low net loss for the year at $183 million, in part because of poor holiday rentals and sales. As consumers increasingly turn to downloads – the numbers have doubled in the last year alone – Blockbuster may simply not be able to provide consumers with the ease and quickness they need in a rental provider.

The company tried to solve the problem by partnering with NCR, which rents movie kiosks at locations like supermarkets so that buyers can rent their DVDs when they’re already out running other errands. Blockbuster has been closing stores and relying on the kiosks more heavily, but being able to pick up a movie at the same time as that gallon of milk may not be convenient enough.

Increasingly, viewers want to get their movies without leaving the house – and Wal-Mart has already beaten Blockbuster to the punch by getting in on the downloading market first.