There are reports that Walmart is looking to get into the streaming game, to take on Amazon.
We are seeing barriers between industries breaking down. The idea that a company is in a specific industry is outdated when it comes to technology. It is a world driven by information. Therefore, for those who want to be relevant in the future, it is crucial to tap into this.
Of course, this is a lot more than just data mining. We are referring to completely disruptions of industries. In short, the players are changing.
Amazon is no longer an online retailer.
Naturally this is a part of their business but their most profitable division is Amazon Web Services. They are also making a major push into the world of entertainment, as evidenced by their deal for MGM, thus growing the potential of Amazon Studios.
Walmart is not one to be left behind.
While its revenues still outpace Amazon, the company is going to have to do something. It is lagging in the e-commerce game and video is a pathway for it to improve its performance.
Basically, Walmart needs to become a platform.
For this reason, there are rumors the company is in talks to buy Vizio. This would get the company into the streaming game while bringing it into the advertising realm.
Both of these are attractive solutions for Walmart.
However, there are some who thing that a better move is to buy Roku, something that would cost Walmart $10 billion more.
This is a healthy sum, one which could pay dividends for the company. There is little dispute as to the viability of Roku and it would insert Walmart as a major player in the television sector.
Here we have another example of how disruption is coming from every corner.
One thing that Walmart can do with Vizio is put a lot of money into it. The concept of a platform is crucial, allowing entities to leverage other aspects of their operations.
Vizio would enable Walmart to promote other products and services, something that Amazon has mastered. It could also enhance the profitability since platforms can be very profitable, especially when based upon subscriptions.
This does not bode well for the traditional media entities. Their business model is rather straight forward. While their libraries could have enormous value, it pales in comparison to resources available to some of these other companies.
The broadcasting world is fascinating since it is shifting in real time. We are able to watch all the changed taking place right before our eyes. Regulation is minimal as compared to other industries. This means the protection from this end is almost non-existent.
Networks are becoming more crucial. As technology changes things, the race for eyeballs is only going grow. We already see the behemoths getting into the game.
Will Walmart become the tnext non-media company to enter the space?
If the rumors are true, it could well be the case. Unfortunately, for the traditional broadcasters, this will not be the last one to enter.
