Video Streaming sites have increased in popularity over the years. Now, Walmart could be the next contender in the video streaming wars. Reports say Walmart is looking to contest with Netflix and Amazon Prime Video. It wants to undercut the competition by pricing it at $8 or less per month.
The 8 dollars per month tends to be more popular with residents on the east and west coast of the States. Those living in the central United States tend to go towards lower cost options. As of now, Netflix prices are between $8 and $14 a month. Meanwhile, Amazon Prime Videos is about $8 per month.
Both Netflix and Amazon Prime have increased their prices as well. The first raising its highest 4K streaming plan by $2 and mid-tier plan by $1. The latter raised their annual Prime subscription to $119 in May (Prime Video Included in the membership).
What Would the New Wallmart Video Streaming Service Entail and How Will Things Change?
Walmart is still in the early stages of planning and could decide to scrap the idea entirely. However, should Walmart choose to have a streaming service of its own, it would stand in direct competition with the other two streaming service industry mega-houses. Walmart could also consider no-cost ad-supported service.
Walmart isn’t wholly new to the world of video streaming as it already owns Vudu. The movie rental and buying service launched its own ad-supported streaming service, Movies on Us a few years ago. However, neither are near as popular as Netflix or Amazon Prime Video.
It’s uncertain what type of shows and movies Walmart’s streaming service would hold. Netflix and Amazon carry licensed content. However, all involved in the streaming wars are heavily investing in original programming. Netflix, Amazon, Hulu, and even Apple are planning to spend billions on original content that would bring viewers to their sites. Examples include Stranger Things from Netflix and Amazon’s The marvelous Mrs. Maisel.
Walmart’s announcement of possibly starting a streaming service comes at the same time Netflix’s subscriber growth rate slows. Even with 130 million subscribers worldwide, the company missed its subscriber growth targets for the timeframe of April- June by nearly one million.
The battle between Walmart and Amazon for retail dominance also continues in the meantime. Recently, Walmart signed a five-year agreement with Microsoft to use its cloud services across the company. Their cloud service is the biggest threat to Amazon’s AWS. Ther are even rumors Microsoft could help Walmart even more. The retailer has looked into testing cashier-less tech created by Microsoft, in its stores. This change would eliminate the need for checkout lines. Currently, Amazon Go stores use similar technology and more locations are planned to open soon.