Walmart gets into online entertainment with ad-supported TV and movie streaming services
US retailer, and owner of Asda in the UK, Walmart has launched its own TV and movie streaming service, that will be supported by pre- and mid-roll advertising rather than a subscription fee.
Walmart enters movie streaming market
VuDu Movies on Us builds on an existing offer on the VuDu platform, which Walmart bought in 2010. Until now, users have been able to rent or buy films and TV programmes but has failed to maintain its position amid the rise of Netflix and Amazon Video.
While its entry into streaming will place it closer to those two giants, it will no be competing with them when it comes to new releases or creating its own original content. Walmart is looking to keep things simple by offering older titles such as Mad Max and School of Rock for free, but with one caveat – there will be adverts.
"Vudu is always looking for new ways for customers to save money, and nothing is more affordable than free," said Jeremy Verba, VP-general manager of Vudu.
Verba claimed that half of Walmart shoppers prefer free ad-supported video-on-demand to subscription services.
According to Adage, a handful of automotive and credit-card brands have signed up as the first advertising partners as, of course, has Walmart. When it comes to measurement, Nielsen has been brought on board although Verba is apparently mulling other third-party providers.
As for Walmart, this adds to its arsenal of ad opportunities for brands. Between the Walmart Exchange – its media buying arm which pools its customer and sales data to serve ads – and its investment into widening the inventory on its own properties, the retailer has created an increasingly compelling ecosystem.