Digital Gabe
Cutting Edge Commentary On All Things Media

The Lines Between Retail and Streaming Are Blurring

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Just when you think you’ve seen everything in marketing comes word of a very unusual mash-up.  Yesterday Walmart announced plans to launch a subscription video service to compete with Netflix and Amazon.  The platform, called Vudu, will be the centerpiece of Walmart’s new digital entertainment division.  Vudu is expected to launch in Q4 with an estimated $8/mo subscription charge.  So far there are no details on the type of content to be featured on Vudu.

While the idea of Walmart getting into VOD (video on-demand) seems weird at first, it actually makes sense if you compare it to Amazon’s business strategy.  Amazon’s Prime subscriptions are the key to their eComm business model.  Over the years they’ve added exclusive and even self-produced video content, which Prime members can access for free.  By creating a bundle of freebies Amazon gives customers more value in their Prime membership which drives new subscriptions.  So it’s feasible that Walmart is trying to copy this strategy by creating its own video network, which someday could be bundled into their subscription shopping service.

Talked about blurred lines!

 

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