Will Walmart Try to Undercut It on Price — Netflix

Will Walmart Try to Undercut It on Price — Netflix

Will Walmart Try to Undercut It on Price — Netflix

Research from United Kingdom media regulator Ofcom reveals subscriptions to the UK's top trio of streaming outlets - Netflix, NOW TV (Sky) and Amazon Prime - climbed to 15.4 million, while pay-TV fell short at 15.1 million subscriptions. While the venture would be expensive, it could potentially aid Walmart in its ongoing battle against Amazon, which has taken a bite out of the profits of many brick-and-mortar retailers.

In a report published Wednesday, the regulator said that 15.4 million Brits had subscriptions to Netflix (NFLX), Amazon (AMZN) Prime Video and a streaming service offered by Sky (SKYAY) in the first three months of 2018. Walmart is also considering an ad-supported free service.

Walmart acquired on-demand video service Vudu in 2010. The total average viewing time on all devices is five hours, one minute, with about a third of that being to online content. But people aged 16 to 34 spend a majority of their time (over two and a half hours) watching streaming content on platforms such as Google's (GOOGL) YouTube and Netflix.

Netflix, Amazon and NOW TV attracted 15.4 million subscribers in the first quarter, ahead of 15.1 million pay-TV contracts, Ofcom said citing BARB Establishment Survey data.

A quick survey of executives in the streaming video and programmatic video ad space suggested significant skepticism about Walmart's plans to enter the space. As usual with Walmart, the company would compete on price, streaming movies and television shows for $8 per month, which is less than the amount charged by the others. No details regarding the type of movies or shows that will be available have been released.

According to Ofcom's latest Media Nations report, which covers major trends in United Kingdom television, pay TV revenues also declined past year after a period of sustained growth, although pay TV still generates far greater revenue in total - £6.4 billion against £895 million for OTT TV services.

Vudu, however, is more buy-what-you-want, which seems to go against the monthly subscription models common today.

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