The streaming world is getting crowded. While Netflix is still the 800-pound gorilla of the group, Hulu, Amazon Video and various other premium-channel standalone streaming services are available for purchase. Disney is soon to get into the game with its own streaming service, and an ESPN standalone streaming service has already recently launched.
It’s a packed market, which brings us to our next point: It’s likely going to become even more crowded beyond Disney’s entry into the streaming world.
Yes, rumors are now swirling about a new potential entry to the standalone streaming market – and it’s an unusual one: Walmart.
That’s right, Walmart.
According to The Information, Walmart is currently pondering starting its own streaming service and undercutting the per-month cost of Amazon Video and Netflix in an effort to gain subscribers quickly. Per the report, Walmart is said to be proposing a service that costs $8 per month.
Reports indicate that Walmart may also be offering the streaming service at an even lower price point if viewers are willing to watch ads. That could spell trouble for Netflix, especially in the wake of the service posting lower than expected subscriber growth numbers and having recently raised the price of its service. On Netflix, plans start as low as $8 but can creep up into the mid-teens per month for high-resolution and multi-screen viewing experiences. Though Amazon Video is complimentary for Prime members, it costs $9 for those wishing to pay per month and not receive Prime membership.
This could stir up the industry in multiple ways.
Though Netflix is still the streaming leader – and it’s not even close right now – the company has been dealt some significant blows recently. In mid-July, investors were unhappy with the subscriber growth the company reported, something that caused its stock to dip about 8 percent. It’s unlikely that Netflix is shaking in its boots with the Walmart news, especially with its lineup of high-quality original programming, but there’s no question that Netflix and the other streaming services are taking note of these new developments.
Reports indicate that Walmart is planning to launch its streaming service within the Vudu platform, which it owns. Vudu today exists as a streaming movie platform, where users can rent and purchase movies (as well as download owned films that come with online codes). What’s more is that this doesn’t appear to be a long-term project for Walmart. Reports indicate that it is planning on rolling out this service as soon as the fourth quarter of 2018. It’s said that the streaming service has plans to offer original and licensed programming, similar to what the likes of Hulu, Amazon Video and Netflix do.
Even more interesting is that Walmart recently announced a five-year partnership with Microsoft, so perhaps that arrangement could influence the type of programming that Walmart offers or help to generate funds to bring programming to its platform.
The details of Walmart’s streaming service are still largely up in the air, but it appears that it’s only a matter of when it will happen – and not if it will happen.
With Walmart’s looming entry into the streaming world (not to mention Disney getting into the game soon as well), the market is starting to become saturated. While it’s always good to have choice, it’s unlikely that consumers are going to be subscribing to every single one of the services. That means that consumers will either have to routinely drop and restart subscriptions on the various services, or pick and choose only a few to always be subscribing to.
Either way, the streaming services are going to be under pressure to provide exceptional content at a good value – and that could be easier said than done if subscription numbers begin to dip from newfound competition. Stay tuned for the latest developments on the “streaming wars” – things are certainly heating up!
Regards,
Ethan Warrick
Editor
Wealth Authority
