Sources Indicate Walmart may Launch Streaming Service to Compete with Netflix

With news about Netflix falling short on their second quarter subscriber target, sources say Walmart is preparing to launch their own streaming service. Apparently, this service will be priced at USD 8 or less a month with an option of a free ad-supported version of the streaming service. Walmart will most likely be offering the potential streaming service through Vudu, the subsidiary they acquired back in 2010. Vudu is available on many consoles and devices such as the PlayStation 4, Xbox One, Apple TV, iPad, Roku devices and smartphones. Unfortunately, Vudu has not seen the same popularity as Amazon Prime Video and Netflix, drawing in only 18,000 user hours compared to 315,000 hours for Prime and a whooping 897,000 hours for Netflix.

            However, executives at Walmart believe their new potential streaming option would be popular for those living in middle America, compared to the popularity of Netflix and Amazon on the coasts of America. At less than USD 8 a month, it is lower than the price of a Netflix subscription which ranges between USD 8 and $14 a month.

            Netflix spends around USD 3 Billion to USD 4 Billion a year financing their programming. While Walmart makes more than enough to match that, generating USD 17 Billion in cash, it is unclear if Walmart is willing to take the risk given the crowded market and intense competition of already existing streaming services. Other companies are also considering new services, such as Apple and Facebook.

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