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Walmart, Inc (WMT – Free Report) recently announced its intention to partner with Metro Goldwyn Mayer (MGM) film studio to create content for Vudu, its video-on-demand service. The programs will be exclusively licensed to Vudu for North America and available on the free, advertising-supported Vudu service of Movies On Us.
The Walmart announcement aims to increase the number of monthly viewers of Vudu, which is well below its rival Netflix Inc. (NFLX – Free Report) and Hulu, owned by Comcast Corporation (CMCSA – Free Report), The Walt Disney Company (DIS) and Twenty-first Century Fox, Inc. (FOXA – Free report).
Naturally, this will intensify competition from Netflix, Hulu and Amazon.com, Inc. (AMZN – Free Report) Amazon Prime, which has so far dominated the space. In addition, the holiday season is also approaching and the giants of online broadcasting are preparing with new broadcasts.
Walmart intensifies war continuously
The two men will officially announce their announcement in Los Angeles on October 9, revealing the name of the first production under the partnership that Walmart will license to MGM. The studio will create original content exclusively for Vudu, based on the franchises of its extensive film and television catalog. The first series is expected to debut in the first quarter of 2019 on Movies On Us.
The retail giant is trying to increase the monthly membership of Vudu, which trails behind the huge subscriber base of Netflix and Hulu. Of course, licensing MGM content is a smart move by Walmart, as producing original content is expensive. Walmart bought Vudu in 2010 to counter the decline in in-store DVD sales.
Vudu offers about 15,000 titles to buy or rent, while Movies On Us, its ad-supported streaming service, offers 5,000 movies and TV shows. However, despite this, Vudu did not pose a significant threat to companies like Netflix, Hulu and Amazon Prime. The recent decision will certainly help Walmart increase Vudu's monthly membership and increase competition.
Competition intensifies
The Walmart announcement comes just before the holiday season. The online streaming giants are gearing up with more original content, while online streaming traffic is increasing during the holiday season. Netflix is already ready to take a length in advance with a series of original Christmas movies. It goes without saying that the online streaming market is booming and that a growing number of players are trying to penetrate the area.
Walmart will also face stiff competition from existing players as well as many companies considering launching their online streaming service. That said, the competition is already taking a fierce form. In July, Netflix announced an $ 8 billion spend on original content in 2018.
Amazon has also aggressively spent original content for its Amazon Prime subscribers. The e-commerce giant would have spent $ 4 billion in content last year, which is expected to increase this year, while HBO, owned by AT & T Inc. (T – Free Report) announced plans to spend $ 2.7 billion on original content. Apple Inc. (AAPL – Free Report) also invests in original content and develops its own streaming service. Apple has a # 2 Zacks rank (purchase), while Walmart, Amazon, Netflix, Twenty-First Century Fox, AT & T and Comcast each carry a rank of # 3 Zacks (pending). You can see Here you will find the complete list of Zacks shares # 1 at current rank (strong purchase).
To summarize
The media streaming war is skyrocketing with demand for original content growing steadily. Walmart's video streaming projects are not just about increasing Vudu's monthly membership, but also capturing the growing online streaming market.
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