Walmart Inks Deal to Give Paramount+ to Walmart+ Subscribers

Walmart has reached a deal to offer Paramount Global’s streaming service as a perk of its Walmart+ membership program, the companies confirmed on Monday. Starting in September, customers who belong to the retailer’s program will get free access to an ad-supported plan on Paramount+, which includes movies and shows such as “Star Trek,” “Paw Patrol,” “The Godfather” and “SpongeBob Squarepants.” Walmart launched Walmart+ nearly two years ago to drive sales and deeper customer engagement. The program costs $98 per year, or $12.95 per month, and is the company’s answer to Amazon Prime, but with a different set of perks. It includes free shipping of online purchases, free grocery deliveries for orders of at least $35, and discounts on prescriptions and gas.
Total Retail's Take: This move is intended to improve Walmart's chances of acquiring and retaining coveted paid loyalty members, a strategy its chief rival, Amazon.com, has used to strengthen its position as the e-commerce leader. While Walmart+ customers are paying an annual fee of nearly $100 to shop with the retailer, that's significantly cheaper than a year membership to Amazon Prime ($139). Furthermore, that membership fee is augmented by increased spending by paid loyalty members compared to nonmembers.
“With the addition of Paramount+, we are demonstrating our unique ability to help members save even more and live better by delivering entertainment for less, too,” Chris Cracchiolo, general manager of Walmart+, said in a news release, perhaps a not-so-subtle nod to the affordability of Walmart+ compared to Amazon Prime. The bottom line, however, is that for consumers to pay for a premium loyalty program such as Walmart+, they must believe they're getting value from it. Amazon has proven that its Prime members are getting, or at least believe they're getting, value; Walmart is out to do the same.

Joe Keenan is the executive editor of Total Retail. Joe has more than 10 years experience covering the retail industry, and enjoys profiling innovative companies and people in the space.