Amazon Prime and Netflix are drawing more United Kingdom subscribers than ever
19 July, 2018, 16:13 | Author: Irvin Gilbert
Subscriptions to OTT TV services Netflix, Amazon Prime Video and Now TV have overtaken traditional pay TV services in the United Kingdom, according to figures compiled by media and telecom regulator Ofcom. While the venture would be expensive, it could potentially aid Walmart in its ongoing battle against Amazon, which has taken a bite out of the profits of many brick-and-mortar retailers. Currently, Netflix prices its service between $8 and $14 per month while Amazon Prime Video is roughly $8 per month.
While taking on Netflix and Amazon on pricing sounds like something Walmart would do, the report notes that there is the possibility that Walmart will decide not to enter such a capital and tech-intensive business, and just drop the idea.
One source told the outlet that the service could cost less than $8 per month, and it could also have an ad-supported option. Walmart already operates Vudu, but that service boasts only 100,000 titles and hasn't caught on like its streaming rivals. But people aged 16 to 34 spend a majority of their time (over two and a half hours) watching streaming content on platforms such as Google's (GOOGL) YouTube and Netflix. "Netflix and Amazon are seen as more popular with people on the East and West Coasts of the US", stated one of the anonymous sources.
A quick survey of executives in the streaming video and programmatic video ad space suggested significant skepticism about Walmart's plans to enter the space. (Netflix's standard HD plan is now $10.99 monthly.) But the report had no details on what kind of TV shows, movies or other programming might be available in a Walmart SVOD service.
Ted Sarandos, a chief content officer at Netflix, in an earnings interview Monday, said original content is the future of streaming, according to Quartz. By contrast, obtaining free shipping is still the main reason to subscribe to Amazon Prime, although this is declining in importance, down from 71% a year ago to 51% in Q1, compared with 20% who cited original content or content not available elsewhere as a reason to sign up.
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