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Wal-Mart Jumps Into Video Streaming

Endoflow2010 writes "Today Wal-Mart has added streaming video to their website. What better time to compete with Netflix, now that they have raised their prices? On Wal-Mart's website, the movies will be available the same day the DVDs go on sale in stores. Walmart.com general manager Steve Nave said the retailer is following its customers as they increasingly embrace digital movie rentals and purchases. 'We know customers are starting to shift their behavior, in terms of how they consume their media,' Nave said, adding, 'As as customers make that change, we don't want to lose that customer as they shift to digital.' Wal-Mart, long the nation's leading seller of DVDs, signaled its intent to double down on digital movie distribution in February 2010, when it spent a reported $100 million to acquire Vudu, a Silicon Valley start-up that was gradually being added to home entertainment devices."

27 of 150 comments (clear)

  1. Useless by bmo · · Score: 5, Insightful

    Streaming is useless when ISPs keep adding more caps.

    Many ISPs are also cable-television providers and they're doing their best to smother this baby while it's still in the crib.

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    BMO

    1. Re:Useless by Ichijo · · Score: 2

      Bandwidth caps should be taken away during those times when usage is low, similar to cell phone plans with free unlimited nights and weekends. Then you could schedule your movie downloads for the wee hours and watch them the next day.

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    2. Re:Useless by 0100010001010011 · · Score: 2

      They should invent something like... prestreaming. So like say I want to watch Harry Potter tonight. But I know he internet will be like busy. So I tell my TV to prestream it this morning so that when I go back to watch it tonight. It's like already there.

      You could load it with down pipe. I think I just discovered my first patent!

    3. Re:Useless by icebraining · · Score: 2

      We had those here in Portugal, before we moved to unlimited. We had 20GB/month to use (for a 512Kbps package), but then between 1am and 9am it was "happy hours," where it didn't count.

      Of course, P2P clients with scheduling to connect/disconnect at designed times where very popular.

    4. Re:Useless by alostpacket · · Score: 3, Funny

      Excellent! I think they should add another layer. Say like when I know what I want to watch 2-14 Buisiness days (M-F) from now, I could tell them and they'd send it to me on some type of disc and I could watch it whenever I got it and send it back when I was done. ;)

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    5. Re:Useless by bmo · · Score: 2

      You don't seem to understand...

      ISPs that are also cable companies (comcast, cox, twc, etc) will guarantee that streaming is "shit tier" third-class/steerage class video and the only way you can get actual HDTV (why else did you buy a flat panel tv?) is to buy into one of the cable "bundles." HDTV streaming will simply run into a cap by the end of the week and you'll be SOL for the rest of the month.

      Because of this, the cable companies will retain their monopoly over HD content. This is by design. It is bullshit and anti-competitive. They are deliberately having you over a barrel as a customer.

      This is why Netflix is fighting caps in the US and Canada.

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      BMO

    6. Re:Useless by timeOday · · Score: 2

      I understand that concern, but I doubt they can pull it off. If a significant number of people start hitting the cap, there will be a lot of market pressure for higher caps (at least in areas with competitive markets), and legal pressure due to the obvious anti-competitive aspect. I wouldn't make a blanket statement that all caps are good or bad, it all depends on how restrictive they are. So long as most subscribers (90%+) aren't feeling a pinch, that seems reasonable for a fixed-price offering. I am willing to bet that average bandwidth usage per customer is still growing at a healthy rate, and I won't panic until/unless providers manage to stop that trend. If the caps haven't budged 3 or 4 years from now, I will certainly change my tune.

  2. Obligatory by ekimd · · Score: 3, Insightful

    But will it support Linux?

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    'Impossible' is a word that humans use far too often. -- Seven of Nine
    1. Re:Obligatory by Dahamma · · Score: 4, Informative

      It's Flash-based, so it does support Linux if you install the latest Flash plugin.

  3. I bet they by bugs2squash · · Score: 2

    sell more DVDs than anyone else for a bunch of reasons other than that they have the best DVDs available. The concept that content is king will be more important online than it is for stacking DVDs high and selling them cheap.

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    Nullius in verba
  4. Re:Canada anyone? by m2vq · · Score: 2

    Canada should join Europe instead, we have Spotify and Voddler here.

  5. Even if it was the best and the cheapest... by DogDude · · Score: 2

    ... I wouldn't touch it. I just don't do business with Wal-Mart for a number of reasons. Of course, I'm just one person among hundreds of millions who just don't care where they spend their money.

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    1. Re:Even if it was the best and the cheapest... by WillDraven · · Score: 4, Insightful

      ... I wouldn't touch it. I just don't do business with Wal-Mart for a number of reasons. Of course, I'm just one person among hundreds of millions who just don't care where they spend their money.

      Haha, the hundreds of millions who shop there do so precisely because they care where their money goes.

      Not exactly. They don't care where it goes, they just care how much of it is going.

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      This is my sig. There are many like it but this one is mine.
  6. Censored? by c_jonescc · · Score: 3, Interesting

    I know Wal-Mart sells censored versions of CDs. Will they be doing the same with the movies, or is there a reasonable expectation that the streaming movie will be the same as I would see in the theater or on Netflix?

    Unclear convo:
    http://boards.straightdope.com/sdmb/showthread.php?t=85664

    --
    Getting diabetes AND salmonella would be a bad weekend.
    1. Re:Censored? by cbope · · Score: 2

      Absolutely. We wouldn't want "dangerous" words heard by our perfect little children who never do any wrong and whom we need to shield and protect from everything even slightly uncomfortable or otherwise known as the "real world". You know, the one where everybody behaves, follows the letter of the law and never does anything wrong.

      Seriously, I don't shop at Walmart, because I just don't believe in their business practices, their presumed moral authority over what I as a consumer can buy and the way they treat their employees and suppliers. They really are destroying America in the name of "cheap prices", and the consuming public is mostly buying it.

  7. Step 3: Divide & Conquer by rsmith-mac · · Score: 3, Insightful

    The MAFIAA standard plan to releasing content on the internet while maintaining control of the distribution chain:

    • 1) Let a company license it for cheap. It's either an end-of-life service that lets them make a few more pennies on content that's long since been monetized, or should it for some reason take off, this will help build up demand.
    • 2) Should it catch on, jack up the contract prices so that it doesn't undercut other media sales.
    • 3) License the same content to a financially sound natural competitor of the company in #1, so that they can bleed company #1 of customers.
    • 4) After company #1 has been sufficiently weakened, jack up the contract prices on company #2 and all further companies.
    • 5) Profit. Internet distribution is handled through a number of smaller providers engaged in bitter competition, so they won't work together and they don't have the individual clout to dictate any of the terms of future contacts.

    The MAFIAA learned their mistake from iTunes, where they waited until it was too late to try to stop Apple. And while they eventually got variable pricing, they still had to give Apple more control than they're comfortable with - it still makes them rage to this day. They aren't going to make the same mistake with films and TV shows: no single competitor will be allowed to get big enough to dictate contract terms. It will be the studios who make a profit and the studios who anyone has to go through to publish content; the role of the distributors is to distribute content as cheap as possible for the studios.

    And thus we're on Step 3. WalMart is the competitor the studios are setting up to combat Netflix. When Netflix is sufficiently bled, WalMart will then have their contract prices increased just as Netflix had.

    1. Re:Step 3: Divide & Conquer by Tenareth · · Score: 4, Insightful

      Small problem with that plan is that for #4, Walmart would have to cave... if there is one thing that Walmart has shown to be outrageously good at, it is controlling their suppliers' pricing.

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    2. Re:Step 3: Divide & Conquer by WillDraven · · Score: 3, Insightful

      I would be leery of trying this tactic if I were the studios. At least with WalMart. WalMart has enough leverage in the retail business to destroy anyone who messes with them. WalMart could simply threaten to no longer carry the studios DVDs if they don't play ball and the studio would have to buckle, unless they wanted to lose 30-40% of their DVD sales.

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  8. Re:Netflix by blair1q · · Score: 2

    No, they raised the price. Used to be you got discs for $8 and streaming was free. Then the two of them were $11, meaning streaming went up to $3. Now to get the same thing it costs you $16. They raised the price on streaming. If you were only streaming while you had the ability to get discs, too, then you were choosing to pay $11 for a streaming-only account. That's not what its price was, it was just what you decided to pay for it. Since their streaming has a limited selection and degraded quality (no 1080p, bad throughput issues, etc.) it isn't worth as much as getting the same movie on a disc. Its only advantage is the fast turnaround, which isn't worth what the quality and limitation cost it.

  9. Re:Not unlimited = no competition for Netflix by Tenareth · · Score: 2

    But it is competition for Amazon Unbox.

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  10. Not competition for Netflix... by Treskin · · Score: 2

    From the article, this is not an unlimited streaming service like Netflix or Hulu. This is a video-on-demand service like iTunes (and plethora other similar stores) where you have to pay for every item you download, either as a rental or a purchase. Yes, you can get titles the same day the are released on DVD -- for a $25 download price.

  11. Great Idea by Sloppy · · Score: 4, Funny

    Bandwidth caps should be taken away during those times when usage is low, similar to cell phone plans with free unlimited nights and weekends. Then you could schedule your movie downloads for the wee hours and watch them the next day.

    That is just too fucking awesome: people want to time-shift streaming to make it cheaper, more efficient, and less painfully laggy. Don't get me wrong: it is a good idea. I sincerely like it. Who wants to stream when the network is at its busiest?

    Then, next, all you need to do is have multiple recipients for each stream (no problem getting people to synchronous their receipt, since they're time-shifting anyway; this is a job for a computer!), so that you can reap the advantages of broadcast or multicast. For a popular TV show with n viewers, this would lead an an up-to-n-fold increase in efficiency on some segments of the network. For large values of n that is truly a no-brainer.

    And then you will have invented something new and patent worthy. Call it "cable television combined with DVR." It would be awesome tech, similar to what people will be using in the year 2000.

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  12. Re:Enough with the "digital" crap. by 93+Escort+Wagon · · Score: 3, Funny

    Newsflash: DVDs are digital, have been since they came out.

    Please stop calling each new wave of technology "switching to digital" -- practically everything is digital already; I know it's hard, but you'll just have to bite the bullet and get half a clue what you're talking about so you can describe it. In this particular case, "internet", "on-line", "streaming", and/or "not a big truck" may be useful.

    Over the past few weeks I'd grown concerned that some horrific accident had decimated the ranks of overly-pedantic Slashdot users - I'm glad to find out you're okay!

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  13. Re:Netflix by blair1q · · Score: 2

    So if you want snow tires and the only way to get them is by buying a Bronco, snow tires are the price of a Bronco.

    Only to you.

  14. Re:Why is Walmart going into video streaming? by fuzzyfuzzyfungus · · Score: 2

    Walmart actually has a pretty substantial datacenter back-end for doing logistics, supply chain, and stocking decisions stuff. They are a touch cagey about just how substantial.

    More importantly, though, Walmart's vast physical distribution network makes it one of the major sellers of DVDs, which puts it in a helpful position when negotiating with studios over the price of streaming a given video a given number of times. With their clout in that area, they just have to not be worse than other CDNs(or, if they are, hire one or more CDNs to do it for them) in order to offer a competitive price.

  15. Re:Wake me when... by ThatsMyNick · · Score: 2

    I didn't buy an expensive 62" high-def display, Oppo BD player, component surround sound system, and nice speakers so I can watch the crap quality of what Netflix and everyone else today calls HD.

    Simple, sell them and get a 32". You can now watch Neflix and what everyone calls HD today, will really be HD, and be equivalent to even bluray.

  16. Red box does it for $1 by Vecanti · · Score: 2

    Does it make sense that you can get a physical DVD for $1, but to stream it you pay $5.99?

    RedBox has costs including millions of discs, 10s of 1000s of kiosks, employees all over the country to physically drive and stock the machines.

    Companies like Comcast and Netflix basically already have the infrastructure just sitting there to wipe out Blockbuster and RedBox and anybody else out if they offered $1 movies. Plus it seems like the % profits on $1 streamed movies would be way higher vs RedBox with it's physical costs.

    Is this something being blocked by the old studio type execs or am I missing something? I know there are costs with streaming, but it can't be anywhere near what they are to run 25,000+ RedBox kiosks at $1 a rental can it?