| In a recent member-exclusive, senior reporter Tim Peterson examined the effect the introduction of new streaming platforms has had on the industry. Here's a preview: Streaming wars are starting to claim casualties The streaming wars are pushing companies like Walmart, with core businesses outside of entertainment, to reconsider how committed they actually are to this business. Walmart has technically been in the streaming video business for nearly a decade since acquiring Vudu in February 2010. For much of that time, though, Vudu was basically an online retailer for people to rent and buy movies and TV shows, or download digital copies of DVDs they bought at stores like Walmart. Three years ago, Vudu added a free, ad-supported tier, but it has licensed programs on a revenue-sharing basis, helping to build the retailer’s nascent advertising business and protect its profit margins. Vudu’s foray into original programming, however, has changed the equation. Vudu premiered its first original show in September and is assembling a slate of 12 more original programs to premiere next year. Vudu has set the budgets for projects to range from $4 million to $10 million, according to a media exec familiar with the matter. Even setting aside the six programs already in production or development for 2020 debuts, that’s at least $24 million to $60 million that Walmart will be shelling out on top of the service’s existing costs. To read the rest of the story, subscribe to Digiday+. |
|---|
|
|---|
|
|
|
