Walmart strikes exclusive streaming deal to give Paramount+ to Walmart+ subscribers

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In this photo illustration, a woman’s silhouette holds a smartphone with the Walmart logo displayed on the screen and in the background.Rafael Henrique | Lightrocket | Getty Images

Walmart[3] has reached a deal to offer Paramount Global[4]‘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[5] 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. Now it will also include access to the “essential tier” of Paramount+, which typically costs £4.99 per month and includes commercials.

Paramount also sells a premium product without ads for £9.99 per month. “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. Walmart said in a news release on Monday that it has had positive membership growth every month since its launch in September 2020.

But since launching the service, the retail giant has declined to share its subscriber total. According to estimates by market research firm Consumer Intelligence Research Partners, Walmart+ had 11 million customers as of July — the same as in the April. A survey by equity research firm Morgan Stanley pegged the subscriber count higher at about 16 million members as of May.

Paramount+ is one of the many services that compete for eyeballs in the streaming industry. Paramount Global announced earlier this month that Paramount+ has 43.3 million subscribers around the world. The company aims to reach 100 million subscribers by 2024.

The deal with Walmart will give Paramount+ a new distribution channel to add subscribers as well as a branding boost. Paramount+ is the only streaming service that has struck a deal with Walmart and wanted to launch exclusively to get full marketing attention, according to a person familiar with the deal who was not authorized to speak publicly about it. Jeff Shultz, chief strategy officer and chief business development officer of Paramount Streaming, said the two companies have worked closely together for years by selling consumer products in Walmart’s stores.

The Wall Street Journal[6] first reported the news of the deal.

Walmart will report its second-quarter earnings on Tuesday.

WATCH: Walmart+ members to get access to Paramount+

References

  1. ^ PARA (www.cnbc.com)
  2. ^ WMT (www.cnbc.com)
  3. ^ Walmart (www.cnbc.com)
  4. ^ Paramount Global (www.cnbc.com)
  5. ^ launched Walmart+ nearly two years ago (www.cnbc.com)
  6. ^ The Wall Street Journal (www.wsj.com)