Last week another company got into the video streaming business and it is the most unlikeliest company to enter this business. That company is Wal-Mart. We all know that Wal-Mart is known for it's rolling specials, it's bad publicity, the big yellow smiley face but streaming video was not one thing that you would have recognized them for.
They are trying to get you the user to purchase the streaming videos on their site but also getting people to purchase the video game consoles that stream videos, Blu-ray players, internet ready tv's from their site and also at the same time steam videos from the devices that they purchase. The service which Wal-Mart is using to stream the videos is called VUDU.
With this it just gives Wal-Mart another avenue to make money. They already have Red Box in their retail locations and you can rent the movies, tv shows that you want. But now this just gives Wal-Mart to make more money outside of their brick and mortar stores. For example to rent a video on the streaming service for Wal-Mart it goes for $3.99 compare that to Netflix which for a monthly subscription you pay $7.99 a month. So you would have to rent two movies from Wal-Mart to even come close to Netlix's price.
We have to see how Wal-Mart will market this new service and whether they will do some sort of promotional work with their merchandise to somehow include this service. Around the holiday season you can almost guarantee they will do something. And if they keep the price as is, people might just keep renting movies out the Red Box and also sticking with Netflix. So the ball is in your court Wal-Mart, step up and take charge of this market and steal some customers from Netflix.