To compete with Netflix and Amazon Prime, Walmart is considering offering a plan that will be available for under $8 a month, along with an ad-supported free entry-level tier. Netflix’s current plans begin at $8, while Prime Video begins at $8.99.
This project would be Walmart’s second venture into the streaming realm, after the company’s underwhelming acquisition of Vudu in March 2010. Walmart has not capitalized on its investment to a great extent within the past eight years, with Bloomberg reporting that Vudu users spend an average of two hours a month on the platform, in comparison to Netflix users, who spend an average 25 hours a month on the service.
Previous reports have noted that Facebook and Apple are considering venturing into streaming video. As the market grows more saturated, Netflix and Amazon continue to expand worldwide, while spending billions of dollars on original content in the process. While it wouldn’t be an easy process to generate an audience towards a new streaming service, Walmart certain contains the funds to attempt a takeover.
Currently, nearly one million households subscribe to streaming video services each month in the United States, with the market projected to grow to $84 billion by 2022, according to Bloomberg.