Walmart Inc. (WMT) is planning to launch its own video streaming service to compete with streaming giant Netflix Inc. (NFLX) and Walmart’s top rival Amazon.com Inc. (AMZN), which owns Amazon Prime Video. The retailer intends to offer subscription plans at a price lower than the $8 range charged by Netflix and Amazon.
Walmart already owns a video streaming service called Vudu, which it acquired over eight years ago, and which unfortunately has an abysmally low engagement rate compared to its rivals. There are chances Walmart could roll out its new service through this division, or it could drop the plan for a new service altogether. There is no confirmation on the retailer’s plans from its end.
Not very long back, it was Amazon that was scaring everybody around it with its growth, but now Netflix too has joined the pack. The streaming services provider is giving competitors the chills and companies in the media and entertainment sector are building their resources and mulling various strategic moves to compete with it.
Netflix and Amazon are giants in the video streaming space, and they are on a path of rapid expansion supported by massive investments in their respective businesses. Tech companies like Apple (AAPL) are also moving into this space, and all these players have a large and loyal user base they can count on. Walmart will face a massive challenge in trying to lure these users away from their favorite streaming channels.
Based on data from Bloomberg, the video streaming market is expected to grow to $84 billion by 2022. There are plenty of new users signing up every month, and Walmart has a chance to carve out space for itself in this area by making significant investments in its streaming business.
To attract new users, Walmart could try offering family-oriented content. Since most of the established players in this space offer robust and graphic content, giving importance to light, family-friendly content could help Walmart stand out from the crowd.
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