Retail Giants Kroger and Walmart Incorporate Streaming Services into Membership Programs

Retailers are increasingly partnering with streaming services to enhance the value of their membership programs. In a move to attract and retain customers, Walmart recently integrated a Paramount+ Essential subscription into its Walmart+ membership program, while Instacart and Peacock teamed up to offer Peacock Premium to Instacart+ members in the U.S. This strategy mirrors the approach taken by cell phone carriers such as Verizon, which provided a bundle of Disney+, Hulu, and ESPN+ subscriptions to select mobile customers.

These collaborations not only aim to boost the appeal of retailers’ membership programs but also serve as a strategic move for streaming platforms to expand their ad-supported plans. By offering streaming services as part of their packages, retailers provide streaming companies with a larger audience base, which can be leveraged for advertising purposes and potentially increase customer retention for both parties.

Eunice Shin, CEO and founder of consulting firm Elume Group, highlighted the significance of expanding subscriber counts for ad-supported plans, emphasizing the value of increased viewership in driving advertising revenue. This symbiotic relationship benefits both retailers and streaming platforms, as they work together to enhance the overall customer experience and value proposition.

Retail analyst Brad Jashinsky noted that these additional perks, including streaming services, food, and gas discounts, are designed to create ongoing value for customers, making it harder for them to cancel their memberships. While the core appeal of membership programs like Kroger Boost and Walmart+ lies in benefits such as free delivery, the inclusion of entertainment options reflects retailers’ efforts to cater to diverse customer preferences and interests.

Research from Gartner underscores the strong attachment customers have to streaming services, with many prioritizing them even in times of budget constraints. As retailers compete to differentiate their membership programs, the focus has shifted towards offering a wide range of benefits, from free shipping to entertainment options, in a bid to increase customer loyalty and retention.

Moreover, retailers are increasingly investing in building their retail media networks to incorporate advertising within their online platforms. This strategic move aligns with their goal of expanding membership counts and developing diversified business models to compete with major players like Amazon in the digital advertising space.

In essence, retailers are striving to emulate the success of Amazon’s comprehensive business model by enhancing the overall customer experience and creating value-added services through partnerships with streaming platforms. By leveraging the popularity of streaming services and expanding their membership benefits, retailers aim to solidify customer loyalty and remain competitive in the ever-evolving retail landscape.