Can Walmart Compete with Netflix Hulu and Amazon Prime Video?

Variety.com broke news that Walmart will launch a subscription streaming service later this year, based on their VUDU platform. The Walmart subscription service will be like Netflix, Hulu, and Amazon Prime Video services. But can Walmart compete with Netflix Hulu AND Amazon Prime?

Walmart Plans to Launch a Streaming Service

News outlets are reporting that Walmart plans to launch a Streaming Video On Demand (SVOD) service later this year (2018).

Walmart plans to offer a low-cost SVOD service for the low-low price of $8 per month.

And if the reports are true, Walmart also plans to create original programming that would only be available on Vudu.

Unfortunately, Walmart has not commented or verified these reports. Rumors?

Can Walmart Compete with Netflix Hulu and Amazon Prime Video?

If the reports are true, Walmart would be very late to the game. Netflix, Hulu, and Amazon Prime have massive subscription numbers and a huge lead.

• Netflix – 56.7 Million Subscribers (125 Million Worldwide)
• Hulu (Non-Live & Live) – 20 Million Subscribers
• Amazon Prime – 95 Million Subscribers (estimated; not all subscribers use Prime Video)

The number of Cord Cutters continues to grow. Can Walmart catch up by capturing new Cord Cutters over other streaming services?

Netflix, Hulu, and Amazon Prime Have Award-Winning Original Programming

… it will be difficult for Walmart to compete with original programming…

The amount of new original programming being made is incredible. New shows are being constantly released.

Netflix, Hulu, and Amazon are all making their own productions. Even Sony is making original programming with Crackle productions like The Oath.

Original programming made by Netflix, Hulu, and Amazon is award-winning. They have many of the shows you should be watching.

And the Emmy nominations confirm the quality. Netflix received a stunning 112 Emmy nominations for the 2018 Emmys. Also, Hulu and Amazon received 2018 Emmy nominations for their original programming.

Netflix, Hulu, and Amazon Prime Have Low Cost Subscription Rates

… it will be difficult for Walmart to compete on just low-cost…

Low-cost is a difficult game to play because SVOD subscriptions don’t cost a lot of money each month.

Netflix already offers a low-cost version of their service. For only $7.99 per month, you can watch Netflix on 1 screen at a time in Standard Definition.

Hulu subscription plans start at only $7.99 per month.

Amazon’s Prime Video subscription costs $8.99 per month.

Can Walmart Compete?

Walmart can certainly find the financial resources to compete. But are they committed to spend the kind of cash needed to compete?

Hulu has committed to compete and has paid for it. Hulu Lost $1.887 Billion since 2016 to grow their subscription numbers and build-out their infrastructure. Ouch.

Netflix has committed to SVOD. And Netflix has projected they will have a negative cash flow of between $3 to $4 Billion for 2018. Wow.

Will Walmart make such a large financial commitment to be in the SVOD game?

Source: Variety.com; Walmart Eyes Q4 Launch of Vudu-Branded Service to Rival Netflix (EXCLUSIVE)