Streaming officially overtakes traditional Pay TV in UK

Walmart mulls video streaming service to rival Netflix, Amazon: report

According to The Information, which broke the news, Walmart could try and undercut both Amazon and Netflix on price, or launch an ad-supported video service that could also help drive online retail sales. While the venture would be expensive, it could potentially aid Walmart in its ongoing battle against Amazon, which has taken a bite out of the profits of many brick-and-mortar retailers. Netflix has been steadily raising the price of its service, which now costs between $8 and $14 a month, while Amazon charges $8.99 a month for its Prime Video service.

In comparison Netflix's U.S. price is $10.99 monthly and Amazon costs $12.99, with the option of a $99 annual membership. In 2010, Walmart acquired on-demand video service Vudu. While this is a moment we have been anticipating for a while, the change will only accelerate as more streaming services develop partnerships to ease access for the consumer.

Numerous other streaming services offer their original content. Hulu, Disney, Netflix and Amazon have all invested millions into original content. Apple is projected to spend $4.2 billion on original content by the year 2022. Walmart is said to be aiming for $8 per month with its service, but it could end up even cheaper.

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Walmart already has a digital video storefront with Vudu, an online store for buying and renting digital movies and shows, but a subscription service would be a new frontier for Walmart.

The idea is that by getting bigger, traditional media companies will be able to compete with Netflix and other tech companies that are paying billions to create new content. (Netflix's standard HD plan is now $10.99 monthly.) But the report had no details on what kind of TV shows, movies or other programming might be available in a Walmart SVOD service.

A quick survey of executives in the streaming video and programmatic video ad space suggested significant skepticism about Walmart's plans to enter the space.

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