Photo by Jadon Johnson on Unsplash
July 18, 2024
Can Hallmark+ and Its Retail Benefits Compete With Other Streaming Services?
Hallmark recently announced the launch of Hallmark+, a new streaming service and membership program, set to debut in mid-September. Priced at $7.99 per month or $79.99 per year, Hallmark+ aims to enhance the Hallmark lifestyle experience by combining entertainment with tangible rewards.
“Hallmark+ marks a seminal moment for Hallmark. By intertwining new, rich content experiences with tangible rewards and premium Hallmark gifts, we are delivering a unique, new program that reflects our commitment to spreading joy through our deeply beloved brand touchpoints.”
Mike Perry, President & CEO of Hallmark, via Hallmark
Through this new streaming service, Hallmark+ will offer ad-free viewing of original content, including new genres and formats such as holiday limited series, reality competitions, and new shows featuring popular stars.
Hallmark described one new format as an “unscripted, aspirational series with an emphasis on heart, home, and community featuring fan-favorite stars like Lacey Chabert (Celebrations with Lacey Chabert), Wes Brown (Ready, Set, Glow!), Ashley Williams (Small Town Setup), and Luke Macfarlane (Home is Where the Heart Is).”
When streaming, the service will provide rewards in conjunction with other exclusive retail benefits, such as unlimited eCards, and rewards for shopping at Hallmark stores or online. Membership will also automatically generate a $5 coupon each month that can be spent at Hallmark Gold Crown Stores.
Similarly, Disney offers an exclusive Disney+ Special Access program for consumers who are subscribed to the streaming service. According to its official website, “Disney+ subscribers receive special access to purchase select products for a limited time. While supplies last.”
Furthermore, this summer, streaming service costs have increased. Over the past year, 10 major streaming services have raised prices. Amazon Prime Video introduced an ad-free option for an extra $2.99 per month, and Netflix’s ad-supported plan remained at $6.99. Additionally, Netflix limited viewership to household members and started charging for extra users. As a result, some streaming bundles have begun to rival traditional cable costs. Despite these increases, ad-supported plans still offer a cheaper alternative to cable, prompting consumers to reassess their subscriptions to manage their budgets.
As the streaming wars intensified, Disney allied with Hulu by offering a special bundle, with limited ESPN support. To enhance bundle offers, Max has also recently joined up and is now included as a bundle option with Disney+ and Hulu.
Netflix is still considered the No. 1 contender in the streaming arena, and most experts cite YouTube as the next biggest player.
“We clearly do compete with YouTube in certain segments of their business, and we certainly compete with them for time and attention, but our services also feed each other really well. Our teasers and trailers and behind-the-scenes clips and all those kind of things are incredibly popular on YouTube.”
Ted Sarandos, Netflix co-CEO, via TheWrap
In its Q2 2024 report, Netflix explained that it doesn’t plan on bundling with other major streamers like Disney+ or Max, citing its already strong market position and user engagement. However, Netflix is open to bundling through partnerships, such as with Verizon and Comcast, offering combined subscriptions at different prices.
Discussion Questions
With Hallmark+ blending entertainment and retail rewards, how might this trend reshape the streaming industry and future consumer engagement strategies?
As ad-supported streaming plans rise and competition heats up, what could be the long-term impact on subscription behaviors and pricing models in the streaming sector?
Given Netflix’s focus on standalone positioning and selective bundling, how might its strategy evolve in response to changing consumer preferences and competitive pressures?
Poll
Loading …BrainTrust
Gary Sankary
Retail Industry Strategy, Esri
Melissa Minkow
Director, Retail Strategy, CI&T
Lucille DeHart
Principal, MKT Marketing Services/Columbus Consulting
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Hallmark is a popular channel, especially around the holidays. So, I expect there is a market here for streaming. However, the market is very crowded, and many households already have subscription fatigue, so Hallmark is going to have to work hard to convert people. I think they realize this which is why they’re offering perks like rewards that can be used in Hallmark stores – something that might drive some much-needed traffic to shops. One Hallmark might need to watch is the churn: people just subscribing for the holidays and then cancelling after the season.
Normally (controlling) a legacy brand is an asset; but in the case of ‘Hallmark’ – a coined name that was certainly created with full knowldege of the implications – I wonder if it hasn’t become more of a liability. Is there a name that’s more emblematic of the generational divide, of watching family entertainment until you fall asleep… in your Lazy-boy…at 8 PM – than this ? I doubt it.
Reading the article without the benefit of research raises questions for me.
Who are Hallmark’s core consumers and how does that translate to streaming, or retail locations? Do Hallmark viewers also shop at Hallmark retail locations? Will the incentive of e-cards motivate anyone to spend on the monthly/annual fees — most of the incentives offered are free online.
Lastly, are they serving a digital product to an analog audience?
I agree. As someone who was once a dedicated customer, spending hours in Hallmark stores reading and selecting the perfect card for every occasion, this new strategy raises many questions for me as well.
I don’t know. Now that the likes of Candice Cameron Bure has jumped ship, and she was a big draw, is this streaming channel worth 79.99 a year? I don’t think so. Additionally, there is a big chance it is going to increase once it has its base built.
I don’t subscribe to the Hallmark channel and I have an out of body experience every time I stop in one of its stores to buy a greeting card. The last one I bought was for a wedding and it was 12 bucks.
Enticing members who live the “Hallmark lifestyle experience” to visit Gold Crown stores by giving them a monthly $5 coupon is smart. And it makes channel membership about the same cost as a cup of coffee.
There are people out there who love Hallmark movies and who love Hallmark stores. Connecting the two just makes sense.
I agree, George. The Hallmark stores leave a lot to be desired! But there are many Hallmark fans out there!
Die hard fans!
Can Hallmark compete? No, there are already a boatload of streaming platforms and services with several monster players.
At some point in time in the not too distant future, streaming will evolve in a different direction. And it must!
Consumers are frustrated with having to pay separate fees for multiple services in order to get all the programs and events they want.
Hallmark doesn’t have the wherewithal to enter the coliseum this late to be a player. Db
Here’s an idea – let’s bundle all the platforms into one service where you can access multiple channels. Oh wait, wasn’t that called cable?!
There are many headwinds for this venture. Hallmark moves are popular with a very specific market, a subset of which might subscribe to this. However, as pointed out, consumers are getting tapped out on subscriptions. Initially, the value prop for streaming was to cut the cable wire and save money. Now I sense there is a feeling of getting nickeled and dimmed to the point where the cost-to-value equation has changed, and rather than just adding another service, they’re more likely to replace one service with another, a much more difficult proposition for new channels.
I really like the idea that subscribers will get a $5.00 discount at Hallmark stores. For Hallmark fans, that just might be an incentive to replace another streaming service with Hallmark.
As Ted Sarandos of Netflix noted regarding YouTube, “we certainly compete with them for time and attention.” It seems the streaming services are offering infinite choices to viewers who are constrained by a finite amount of time for viewing.
I find the bundles a bit confusing. I must admit, other than the leaders, I don’t even know how I am getting access to some of the second teir players, but I am.
As for Hallmark+, it looks pretty convoluted. And gee, I can’t even find a H
For people who celebrate Christmas in July, they have found their channel! Hallmark has a very loyal following and I am sure this new service will act like an elevated loyalty program. I don’t see this as an acqusition tool, but I do see this as a steady revenue stream among loyalists.
The streaming space is becoming crowded, if not saturated. Hallmark has a very definitive genre of programming that appeals to certain customers. Two questions come to mind.
It’s not a bad idea to blend retail rewards with streaming services. At the end of the day though, whether consumers will sign up or not comes down to the content they get to access as a result of the subscription. If the content is in demand, they’ll pay for it.
Content? YES! Oh, so many choices!
Hallmark is too narrow, and too late to market. When the consumer is choosing between their main provider (Youtubetv, Hulu, etc.) and an additional add-on their budget will already be stretched. Add in the obvious broad choices like Netflix, Amazon, Max and the budget becomes rapidly spent, or overspent. Hallmark cannot compete with a main service plus the logical main add-on, and still find enough of a budget for their service and not Disney, Paramount, Apple TV, Peacock, etc. Plus, all of these have their own production service and distribution service that is larger, better, and has more appeal than a very narrow offering like Hallmark.
Hallmark needs to do something because I doubt that the stores are going anywhere-I mean, do they even operate stores any more? I have no idea because I never see any. As to whether Hallmark+ is that answer, I doubt it. The streaming field is already crowded and their demographic is (I suspect) older, and less willing to add yet another $8.00 to the monthly budget. Additionally they can lather on rewards all they want, however how many porcelain figures can a house hold? And cards? Candles? Okay-people buy candles still, but from Hallmark?