Walmart Reportedly Eyeing Low-Cost Streaming Service to Rival Netflix, Amazon

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Walmart is considering launching a new subscription video service that will act as a direct competitor with Netflix, Amazon and Disney, according to The Information.

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. In 2010, Walmart acquired on-demand video service Vudu. The report found that "cord shaving" is more prevalent than cord-cutting, with 36% of SVOD subscribers cutting down their pay TV spend, compared with 14% who have cut the cord altogether. Brands like Amazon and Netflix, the report suggests, "are seen as more popular with people on the East and West Coasts of the USA", leaving a gap in middle America that Walmart, at least in theory, could attempt to fill.

After several years of attractive growth, pay TV providers saw a 2.7% decrease in total revenue last year to £6.4 billion, while the spending on original programming is also declining. On top of that Pay TV revenues also declined for first time. These challenges can not be underestimated. Less than half of younger people's total daily viewing of 4 hours 48 minutes went to broadcast content, while they spent just under an hour a day watching video on YouTube.

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However, viewers aged 16-34 watched more non-broadcast than broadcast content - an average of 2 hours 37 minutes a day (54%) across all devices, compared with 2 hours 11 minutes (46%).

The Bentonville, Ark. -based retailer sees an opportunity to undercut Netflix and Amazon on price. Currently, you can watch both movies and TV shows on Vudu for free as long as you are willing to watch ads. "By making the best British programmes and working together to reach people who are turning away from TV, our broadcasters can compete in the digital age".

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