Walmart to Offer Streaming Service Paramount+ to Its Members
Stream with Walmart+
Walmart (WMT) has reached an agreement with Paramount Global (PARA) to provide Paramount+ to members of its Walmart+ program. Beginning in September, subscribers will get access to streaming videos in addition to the current membership perks that include free shipping for online orders, discounts on gas, and a 6-month promo of music streaming from Spotify (SPOT). The monthly cost is $12.95.
The terms of the deal include 12-months of exclusivity and two-years access to the Paramount+’s ad-supported service that includes shows like Halo and Star Trek.
The move intensifies the retailing giant’s competition with Amazon (AMZN). The two companies, already competing as low-price sellers, now will go head-to-head with their streaming services. The market share possibilities are enticing. Amazon Prime Video currently boasts about 200 million members globally.
Walmart+ was launched in 2020 and followed Amazon’s lead in using the membership to build brand loyalty as well as its customer base. Its $98 annual price tag comes in below Prime’s $139 charge. Amazon has also added sweeteners to its membership, most recently a year of Grubhub’s online restaurant delivery service.
Evolving Streaming Market
Paramount’s participation in the deal reflects increased competition in the streaming space. As more platforms enter the playing field it’s getting harder for companies to retain subscribers. As a result, there is a trend toward partnerships and bundled deals intended to help support continued growth.
Warner Bros. Discovery (WBD) recently announced plans to merge its HBO Max and Discovery+, with a summer 2023 launch date. The bundle preference was also highlighted by Disney’s (DIS) decision to boost the price of its stand-alone Disney+ service, while leaving its bundled package cost that includes Disney+, Hulu, and ESPN+ unchanged. Consumers may welcome the new offerings, if they can keep up with what is offered, where, and at which price point.
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