Walmart is Considering the Launch of a Subscription Streaming Service

Published July 31, 2018 · Updated July 31, 2018

There is more news that Walmart is considering the launch of a subscription streaming service like Netflix, Hulu, and Amazon Prime Video. Walmart will make the decision by the fall 2018.

Walmart is Considering the Launch of a Subscription Streaming Service

So, it looks like the rumors are true. The Wall Street Journal is reporting that Walmart is talking to veteran television executive Mark Greenberg about launching a OTT (Over-The-Top) video streaming service. This streaming service would likely compete with Netflix, Hulu, and Amazon Prime Video.

But at this point, there are still more questions than answers.

Source: The Wall Street Journal; Walmart Explores Its Own Streaming Service

Low-Low Subscription Price?

What will the price of a Walmart streaming service be? Generally, the price of other streaming services is around $10 bucks – or less. The price of a Walmart service would need to be very low to compete with the content and value of other streaming services like Netflix and Hulu.

Free streaming services like Crackle and Tubi TV could easily find themselves competing with Walmart. To get that low-low subscription price, Walmart could have similar content to Crackle and Tubi TV, but perhaps without commercials.

Will Walmart Have Original Content?

Content is KING! You have to have great content or viewers won’t subscribe.

But you need more than just good content. To get new subscribers and keep existing subscribers, a streaming service has to have ORIGINAL content that people want to watch.

Netflix absolutely understands this. Netflix has released 35-40 NEW ORIGINAL shows and movies EACH MONTH in 2018.

And Netflix has shows and movies that people want to watch by producing award-winning shows.

Hulu understands the importance of content too. The The Handmaid’s Tale has been a huge success for Hulu and has increased Hulu subscription numbers.

Amazon continues to push for great original content too. They have hits with shows like Transparent, The Marvelous Mrs. Maisel, and The Man in High Castle. And Amazon is betting big on the new series Tom Clancy’s Jack Ryan (John Krasinski – coming 8/31) and Homecoming (Julia Roberts). Amazon is making other changes too. Recently they decided to drop their pilot program (making only one episode to test the show with viewers) so that more money could be spent on quickly releasing new shows.

Great content is important if Walmart wants to take subscribers away from Netflix, Hulu, and Amazon.

Can Walmart Compete with Netflix Hulu and Amazon Prime Video?

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 with new Cord Cutters?

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.

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

The Emmy nominations for streaming services confirm the quality. Netflix received a stunning 112 Emmy nominations for the 2018 Emmys. Also, Hulu and Amazon received several 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 streaming services. 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 streaming services game?

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