Does Walmart+ need a video streaming deal to compete with Amazon Prime?
Walmart is looking to add video streaming as a perk for joining its Walmart+ subscription plan, according to numerous reports.
The retailer in recent weeks has held talks with executives at Comcast, Disney and Paramount as it assesses what types of programming would be best received by its subscribers.
It is unclear what level of interest the streaming companies would have in such a relationship. Comcast owns Peacock, Disney offers Disney+, ESPN+ and Hulu, and Paramount operates Paramount+ and Showtime.
Walmart+ memberships, which cost $98 annually or $12.95 monthly, offer free same- and next-day delivery of groceries and other products from local stores. Subscribers also get free shipping from Walmart fulfillment centers with no order minimum.
Members can fill up with discounted fuel at Walmart, Murphy Oil, Exxon and Mobil stations. They also gain access to Sam’s Club pumps and pricing at clubs. Walmart+ members use the retailer’s mobile app to access Scan & Go for contact-free checkouts when shopping in the chain’s stores.
Walmart has added a free six-month Spotify trial membership as a recruitment tool. Last month it announced that Walmart+ members could gain access to its InHome delivery service for an extra $40 per year or $7 a month added to their subscription plan. InHome members, who pay $148 a year for the service, can now become Walmart+ members and get the service for $138.
The retailer’s interest in adding a streaming service or services to its Walmart+ plan is a clear response to rival Amazon.com, which offers free Prime Video as part of its $139 annual subscription plan and $14.99 monthly option.
Walmart’s talks with Comcast, Disney and Paramount are not the first time that it has looked at streaming as a means to gain market share. The retailer acquired Vudu in 2010 and sold it a decade later to Fandango.
The retailer has also developed a relationship with the Roku streaming platform service. The two companies in June announced a shoppable ad deal.
- Walmart Ponders Streaming Deal With Paramount, Disney and Comcast – The New York Times
- Walmart Explores Adding Streaming Video to Walmart+ Membership Program – The Wall Street Journal
- Walmart is trying to build a streaming service, again – The Verge
- Walmart is reportedly looking at deals with streaming services – TechCrunch
- Are Walmart+ members ready to invite the retailer into their homes? – RetailWire
- Will Walmart become the go-to shopping destination for cord cutters? – RetailWire
DISCUSSION QUESTIONS: Is a video streaming deal what Walmart+ needs to compete with Amazon Prime? Will the fact that Walmart does not have a programming service of its own like Amazon be a competitive plus or minus in this scenario?