Netflix Price Rise Causes Walmart Defection
As an act of retaliation at Netflix’s recent 60% monthly subscription fee increase, former customers of the popular online movie rental and Internet streaming company are switching their custom to Vudu, a similar service operated by supermarket chain Walmart.
Netflix, who are widely known as the dominant force in both of their operative markets in the USA, are looking at a potential drop in customers following an increase on the subscription to $15.98 per month, and while that still sounds like a decent deal for unlimited DVD rental and online movie streaming, it is a big rise from the previous $9.99, and could affect their reputation just as they are planning to expand overseas.
The subsequent gap in the market could now be capitalised upon by Vudu, a service run by Walmart (a company that already seems to be a market leader in many fields), and offering a more competitive price for what is essentially the same service (but accessible through an own-brand set-top box or a third-party connected TV).
Vudu’s userbase has grown significantly thanks to the pulling power of Walmart (who purchased Vudu in 2010, when the service was 6 years old), increasing to a 5% market share at the midpoint of 2011, up from 1% at the same point 12 months previously.
With Walmart now planning to add Vudu’s official homepage to their website, it seems as though a real challenger to Netflix could soon be found, as the supermarket giant have been seen to prominently feature and advertise the service, which has in recent months overtaken both the Sony PlayStation Store and Amazon in a customer numbers ‘ranking’ conducted by IHS Screen Digest Media Research, who officially put Vudu’s share of the total market revenue in the US at 5.3%. How much will that figure grow over the next year?
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[...] « Netflix Price Rise Causes Walmart Defection [...]
“Netflix, who ARE widely known…” You use the plural “are” with Netflix? Why are you referring to the people of the company, they are not widely known… When referring to the company, you would use the singular form of the verb, “is”.
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