The Major Alliance Walmart Just Formed
In a surprising announcement, Walmart revealed that it struck up a major partnership with a popular streaming service.
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Walmart is taking its membership to the next level by adding a brand new benefit. Earlier this week, the retailer reached a deal with Paramount Global to include the media company’s streaming service in its subscription program. Starting in September, customers who belong to the outlet’s Plus program will get free access to an ad-supported plan on Paramount+. The service includes popular movies and series like Star Trek, Paw Patrol, The Godfather, and SpongeBob Squarepants.
The popular discount chain launched Walmart+ almost two years ago to drive sales and increase customer engagement. According to CNBC, the program costs $98 per year (or $12.95 per month) and is the company’s answer to Amazon Prime. But it comes with a different set of perks that includes free shipping of online purchases, free grocery deliveries for orders of at least $35, and discounts on prescriptions and gas. Now, it will also include access to the Essential tier of Paramount+, which usually comes with a $4.99 monthly price tag.
Although Walmart‘s streaming offering includes commercials, Paramount also sells a premium product without adverts for $9.99 per month. Speaking about the alliance, General Manager of Walmart+ Chris Cracchiolo said the partnership demonstrates the retailer’s unique ability to help members save even more by delivering entertainment for less too. He added that 85% of U.S. households use streaming services and Paramount+ has the premium content and broad appeal that customers are looking for. “Like Walmart, Paramount has something for everyone,” he said in a press release. “We’re excited about the launch and what comes next.”
Rumors about Walmart seeking a streaming partner first emerged last week when The New York Times said the Arkansas-headquartered company was eyeing Paramount, Comcast, and Disney as possible collaborators. While Paramount Plus isn’t quite in the same league as Disney and Netflix, the platform has created several hit shows including Halo, The Good Fight, and Evil. Along with housing all the shows from the burgeoning Yellowstone universe, the streamer will also be the home of Top Gun: Maverick – the sixth-highest grossing movie of all time.
As such, equipped with Paramount’s impressive catalog of content, Walmart should be better poised to compete with Amazon which is the biggest digital retailer and one of the largest streaming services in the world. The deal will also give Paramount+ a new distribution channel to add subscribers as well as a branding boost. “Pairing Walmart’s expansive reach across the country with Paramount+’s broad and popular content that offers something for everyone is a unique opportunity to expand our partnership,” said the streamer’s Chief Strategy Officer Jeff Shultz in a statement.
Interestingly, Walmart said it’s had positive membership growth every month since its launch in September 2020. But since debuting the service, the retail giant has declined to share its subscriber total. But according to estimates by market research firm Consumer Intelligence Research Partners, Walmart+ had 11 million customers as of July (the same as April). Additionally, a survey by equity research firm Morgan Stanley estimated the subscriber count higher at about 16 million members as of May, The Wall Street Journal reports.
