AT&T to enter the subscription video space next year

AT&T to enter the subscription video space next year AT&T owned WarnerMedia is getting ready to launch its own subscription streaming service next year. While WarnerMedia has a lot of quality content in its stables, the larger question is around the saturation in the streaming video marketplace. How will customers keep spending their subscription dollars for different services and how will these businesses compete in the long run? In other news, Walmart has announced that it will partner with MGM for its video-on-demand service Vudu. In addition, we examine a big challenge for music streaming services like Spotify. Lastly, we look at why SVOD services in the UK and US are struggling with subscriber churn. 

WarnerMedia gets ready to take on Netflix, Amazon Prime Video

It seems launching a subscription video streaming service is slowly becoming a trend for the tech giants. AT&T owned WarnerMedia has announced that it will launch its own subscription streaming service in 2019. The service will lead with HBO as the premium brand along with the group’s other properties which include movies and TV franchises. The announcement follows AT&T’s acquisition of Time Warner last year. The new service will compete with incumbents like Netflix and Amazon Prime Video, and the newer entrants like Disney and Apple. Notably, the group also owns other streaming services like DirecTV Now and HBO Now. More details about the service will be announced soon.
 
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Walmart ties up with MGM for its Vudu service

Walmart has announced that it will partner with US-based movie studio Metro Goldwyn Mayer (MGM) for its VOD service Vudu. While there were a lot of media reports about Walmart launching a video streaming service, the company has confirmed that it is not planning such a move. Instead, the retailer is focused on its in-house VOD service Vudu which it bought eight years ago. Under the partnership, MGM content will be exclusively available for streaming on the Vudu platform. Interestingly, Walmart has also tied up with PayPal which will allow customers to deposit and withdraw cash from their PayPal accounts at Walmart stores. Clearly, Walmart is keeping one eye on financial services as well!
 
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Piracy a huge problem for the music streaming industry

According to a new report, a third of consumers still pirate music regularly. Many customers prefer music streaming services like Spotify and Apple Music but, believe it or not, YouTube remains the most popular platform to consume music. However, the study also found that 36% of people access music through unlicensed means. Also, YouTube does not pay royalties to the music labels further impacting the industry.
 
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SVOD services in the UK and US struggle with subscriber churn

As the subscription streaming market becomes more saturated than ever before, SVOD services in the UK and US are struggling to retain their subscribers. HBO is losing close to 19.2% of customers to churn while Amazon Prime has a better churn rate of 2.9%. Netflix, though, seems to be faring well in both markets and has positive adoption rates. This goes to show that the best streaming service in the market can continue to grow despite problems such as subscription fatigue and an increasingly crowded marketplace.
 
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Also read: Spotify integrates with Google Maps and Garmin


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