United Kingdom communications regulator Ofcom has dropped HEXUS a couple of interesting news releases today, First of all it told us that streaming services have overtaken pay TV here in the United Kingdom for the first time. While the venture would be expensive, it could potentially aid Walmart in its ongoing battle against Amazon, which has taken a bite out of the profits of many brick-and-mortar retailers.
The majority of this (three hours 33 minutes or 71%) was broadcast television, with the remainder (one hour 28 minutes or 29%) non-broadcast content such as YouTube and services such as Netflix and Amazon Prime Video.
According to the report, the $8-per-month price comes from the idea that Netflix and Amazon are more popular with customers on the East and West Coasts.
One source told the outlet that the service could cost less than $8 per month, and it could also have an ad-supported option.
Pay-TV subscription revenue of 6.4 billion pounds in 2017 was down 2.7 percent year-on-year, but still well ahead of the 895 million pounds generated by video streaming services, according to Ofcom's calculations.
According to Ofcom's latest Media Nations report, which covers major trends in United Kingdom television, pay TV revenues also declined past year after a period of sustained growth, although pay TV still generates far greater revenue in total - £6.4 billion against £895 million for OTT TV services. The total number of United Kingdom subscriptions to the three most popular online streaming services - Netflix, Amazon Prime and Sky's Now TV - reached 15.4 million in Q1 2018. Vudu now has a free streaming service called Movies On Us which features ads.
It's unclear whether Walmart will actually move forward with the plan, or where the content would come from. Both Netflix and Amazon feature licensed content on their services, but all companies involved in the streaming wars are throwing piles of cash at original programming. While not able to compete with the industry's big hitters, it offers thousands of movies to buy and rent, and the ad-supported "Movies on Us" lets users watch certain titles for free.