Microsoft’s Walmart partnership isn’t about retail — it’s about streaming

When Walmart and Microsoft announced they had entered into a strategic partnership for wider use of cloud and artificial intelligence technology, everyone stated the obvious: Two major rivals of Amazon are coming together to collaborate on a competitive strategy. While Walmart continues to expand its e-commerce presence to better compete with Amazon, Microsoft has been working on a technology that would eliminate cashiers and checkout lines from stores.

But it doesn’t stop with commerce; Walmart is working with veteran television executive Mark Greenberg on a subscription video-streaming service that would contend with Netflix, Hulu, HBO, and, of course, Prime Video. Of note, Walmart is considering programs “that target consumers who live outside of large cities,” according to people familiar with the plans. However, for the entirety of America, there’s more to it than that.