Walmart is contemplating starting its own streaming service to compete with incumbent giants like Netflix and Amazon, according to a report from The Information.
Citing anonymous people familiar with the plans, The Information reports that Walmart is considering various ways to stand out, including undercutting Amazon and Netflix on price or offering an ad-supported free service. Walmart could always decide not to offer the service, but The Information reports the company sees a compelling opportunity within the competitive streaming market for a low-cost option that potentially targets customers in middle America.
A new streaming service wouldn’t be Walmart’s first foray into online video. In 2010, Walmart acquired on-demand video service Vudu.
The Information notes that a streaming service can be a money maker, but it’s also expensive to set up and acquire content. Even the big names aren’t immune to stumbles as Netflix’s stock sunk following a subpar earnings report this week.
The report comes just a few hours after Walmart announced a sweeping agreement with Amazon rival Microsoft to expand use of the tech giant’s cloud services. The five-year deal for “a broad set of cloud innovation projects,” will cover the use of both Microsoft Azure and Microsoft 365.