Walmart Likely to Venture Into Subscription-Based Streaming

Per sources, Walmart Inc WMT is considering venturing into the subscription-based video streaming arena. If enacted, this new streaming service is likely to open a whole new front for the company and position it competitively with other streaming service provides like Netflix NFLX, Amazon Prime and Hulu. Needless to say, this will introduce a new chapter in the Walmart-Amazon AMZN war.

Streaming Services: A New Frontier

Streaming services have been quite a rave owing to rising demand for internet-based entertainment options. Although Walmart already owns Vudu, a video-on-demand service, the same hasn’t been as successful as other subscription-based services like Netflix or Amazon Prime that offer wider and more attractive content.  

Nevertheless, Walmart’s supposed plans of launching a new streaming service is expected to provide it better competing grounds. Moreover, per sources, this new service is likely to stand out in terms of costs, as the company is likely to charge lower than its rivals. However, if at all Walmart intends to enact the plan, it has quite a lot of catching up to do. Amazon and Netflix have been spending heavily to develop or acquire content. Hence, Walmart will have to invest quite a large sum to incorporate interesting content and features to fortify its foothold in this arena.

 

Focusing on Digital Growth

The talks followed a day after Walmart announced partnership with Microsoft MSFT for gaining greater strength in cloud computing. By partnering with Microsoft, the company is likely to capture greater opportunities in e-commerce and bolster internal operations with greater tech support. It is yet to be seen if enhanced strength in cloud solutions will be able to support the company’s new streaming service. That said, let’s see if Walmart actually turns these rumors into reality by launching a new streaming service and whether it will be able to draw adequate traffic, considering the existence of strong rivals.  

Well, the company has always looked forward to introducing smart and digitally compatible shopping tools across stores and online. These include features like pickup kiosks, same-day delivery services and easy payment solutions. Moreover, the company has been boosting e-commerce presence through partnerships with Flipkart, Jet.com and many more. Such moves indicate that Walmart has been constantly striving to bolster digital presence and stand up to its bold ambitions to evolve as a leading omnichannel retailer.

Wrapping up, Walmart always manages to remain in the news by coming up with unique moves to strengthen footing in the retail world. Such efforts bolster investors’ optimism in this Zacks Rank #3 (Hold) stock that gained 16.2% in the past year compared with the industry’s rise of 17.5%.

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