American retail corporation Walmart may be planning to enter the on-demand video streaming industry to take on established players such as Netflix, and Amazon Prime Video among others. This new development was initially reported by The Information based on “people familiar with the situation”. The report noted that even though this could be a costly move for Walmart, the retail giant seems to be determined to take the fight to Amazon “on multiple fronts”. The company is thinking about pricing the streaming service at a price of $8 (approximately Rs 550) in an attempt to undercut the company when it comes to the cost of the streaming service.
According to The Warp, the company is also looking at introducing a free video streaming tier with ads to support revenue. This is not the only move that Walmart has undertaken in the recent past. The company acquired Indian e-commerce giant Flipkart by outbidding Amazon. According to the report, this was in response to Amazon’s acquisition of Whole Foods last year.
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The reason for a renewed effort is because Vudu has not done well when compared to the major players. This comes after it was reported that Netflix is working on a new ‘Ultra’ tier to increase the pricing of its existing tiers. This is also right after it was reported that Netflix could not gain as many new viewers as it was hoping for.
However, Walmart is not the only company that is trying to break in the on-demand video streaming service industry. Technology giants such as Apple, and Facebook too are working to produce original content for their platforms as YouTube, Netflix, Amazon Prime Video, and Hulu gradually expand their efforts.