Walmart Could Soon Have a Netflix Competitor of Its Own
Walmart Could Soon Have a Netflix Competitor of Its Own
18 July, 2018, 21:58
This wouldn't be the first time Walmart has tried to compete with Netflix.
Emarketer, which measured Netflix's global penetration in a new study, predicted that almost 765 million people worldwide will use a subscription over-the-top (OTT) video service, such as Netflix or Amazon Prime, at least once per month in 2018.
The number of Britons subscribing to TV services like Netflix, Amazon and Sky's NOW TV, has overtaken traditional satellite and cable TV for the first time, media regulator Ofcom said on Wednesday.
The Ofcom report found that the total pay-TV revenues of Sky, Virgin, BT and TalkTalk fell for the first time in the nearly a decade in 2017 to £6.4bn. Overall online audiovisual revenues grew by 28% year-on-year in real terms, to £2.26bn in 2017.
Growth has been explosive: in 2012, the year Netflix launched in the United Kingdom, subscription on-demand revenues were just £52m.
Walmart already owns Vudu, which offers rental and streaming services for movies.
While the popularity of video on-demand (VoD) and subscription video on-demand (SVoD) services is on the rise, the revenue generated (£6.4 billion/$8.4 billion) by Pay-TV operators Sky UK, Virgin TV, BT TV and Talk Talk TV still exceeds that of online audiovisual revenue (£895 million/$1.2 billion) by a significant margin.
Ofcom Chief Executive Sharon White said the rapid change in what we watch and how we watch had profound implications for the United Kingdom television industry. These challenges can not be underestimated. The report also shows the amount of time people spend watching broadcast television has continued to tumble since 2012, and in 2017, fell to approximately three hours on average.
By contrast, the dramatic increase in the popularity of the Silicon Valley streaming services in the United Kingdom fuelled a 28% surge to £2.3bn in what Ofcom terms online audio-visual revenues.
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