Walmart Adds Paramount+ Subscription To Membership Program, To Further Compete With Amazon

BEIJING, CHINA – AUGUST 29: Tom Cruise attends the ‘Mission: Impossible – Fallout’ Press Conference … [+] at The Ancestral Temple on August 29, 2018 in Beijing, . (Photo by Emmanuel Wong/Getty Images for Paramount Pictures)

Getty Images for Paramount Pictures

Amazon AMZN[4] Prime became almost a household staple due to the inherent Prime Video membership and of course the free shipping that accompanied the subscription. Now Walmart WMT[5] is following suit in its membership program, not by offering its own streaming service but instead by pairing with Paramount+[6]. The Paramount+ subscription comes at no extra cost to the Walmart+ membership program.

With the move, Walmart seems to be banking on the future success of Paramount+ as it lags behind streaming behemoths[7] Disney, Netflix NFLX[8] , and Amazon. Walmart stated in a recent announcement: “The streaming service benefit becomes yet another way Walmart is uniquely positioned[9] to give members more for less with Walmart+, whether in-store, at the gas pump, on groceries, listening to music, and now when watching their favorite movies and shows.”

Shoppers wait in line to pay for their purchases at a Walmart store in Los Angeles, California on … [+] November 24, 2009, a few days before ?Black Friday? the day after Thanksgiving which kicks off the holiday shopping season. Retailers are hoping ?doorbuster? deals will stimulate sales despite the weak economy.

AFP PHOTO / Robyn Beck (Photo credit should read ROBYN BECK/AFP via Getty Images)

AFP via Getty Images

“Walmart+ will remain £98 a year or £12.95 a month and include the Paramount+ Essential Plan subscription with an added £59 value.” Walmart also recently revealed that its Walmart+ program generated positive member growth every month since its inauguration in September 2020. “Most recently, the retailer combined its in-home service into Walmart+ to create efficiency for members[10],” it said. “As members seek more ways to save money, they can now consolidate a portion of their subscriptions and get entertainment through the membership.” Walmart goods currently ship free to customers only if they’re stored in Walmart fulfillment centers.

If the membership continues to become more attractive the enticement for shoppers could have the same effect that Amazon FBA had. Smart FBA, with c-suite executives Cohen Chorabik, Phillip Kramer, and Scott Hunt created one of the largest Amazon store management brands in the world. They currently manage more than 250 Amazon FBA stores including some world-class athletes and business owners.

Much of their success has come from their marketing approach, led by Chorabik, and displaying all the infrastructure that they’ve built throughout the years to build sustainable relationships with their clients. They have a large warehouse space approximately 20,000 square feet in Portland, Oregon where they pack and prep millions of dollars worth of products.

PORTALND, OREGON – Smart FBA warehouse (L-R) – Phillip Kramer and Cohen Chorabik.

Smart FBA

Starting the company in early 2020 during the height of COVID, and having a goal of being recognized by Amazon as the number one store management team within their marketplace, CEO Scott Hunt remains optimistic about Amazon. Hunt who has worked on over 1,000 Amazon accounts to date and consulted for several Amazon companies in the past, prior to Smart FBA’s inception, said, “It’s certainly going to be a threat as Walmart is of course a genuine and strong entity, I think with inflation however people are probably not going to choose both.

With tightened purse strings amongst families, I would envision that only one would be chosen and I think so far Amazon has a stronger offering as it’s more solidified and longer tenured. Even with the addition of Paramount+.” As far as Smart FBA is concerned their loyalty to Amazon is secure – at least for now.

LOS ANGELES, CALIFORNIA – SEPTEMBER 03: (L-R) Erin Moriarty, Antony Starr, Jack Quaid and Karen … [+] Fukuhara attend Amazon Prime Video’s “The Boys” Season 2 Drive-In Premiere & Fan Screening on September 03, 2020 in Los Angeles, California. (Photo by Kevin Winter /Getty Images for Amazon Studios)

Getty Images for Amazon Studios

Chief Marketing Officer, Cohen Chorabik, said “Amazon has created such a big opportunity for me from being able to buy my first property to travelling the world and meeting some people I’ve looked up to for years. I always look forward to seeing positive messages from our clients.

It’s truly a great feeling knowing we’ve been able to help so many sellers that have struggled on Amazon or had no idea where to even start.” Chief Operating Officer, Phillip Kramer, concluded, “The starting days were very stressful. We had to build everything up from scratch and create a whole inventory system from day 1.

I cannot thank our team enough for all the effort put in from the start. We wouldn’t be where we are at today without all the raw talent, dedication, and hard work we’ve been able to acquire throughout the years. Excited for what the future holds.”

Similar to Amazon FBA, competition will ramp up[11] at the very least across America, and as Paramount+ grows in terms of content and budgets the potential for shoppers, perhaps converting, will grow as the Walmart package develops.

References

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  4. ^ AMZN (www.forbes.com)
  5. ^ WMT (www.forbes.com)
  6. ^ https://www.forbes.com/sites/walterloeb/2022/08/16/walmart-reports-q2-earnings-and-will-stream-paramount-to-members/amp/ (www.forbes.com)
  7. ^ https://www.forbes.com/sites/qai/2022/09/03/walmart-vs-amazon-the-wmt-vs-amzn-stock-showdown/amp/ (www.forbes.com)
  8. ^ NFLX (www.forbes.com)
  9. ^ https://www.forbes.com/sites/sergeiklebnikov/2022/08/16/walmart-jumps-over-5-after-solid-earnings-and-further-progress-reducing-inventory-levels/amp/ (www.forbes.com)
  10. ^ https://www.forbes.com/sites/sharonedelson/2022/09/15/walmart-brings-virtual-try-on-experience-to-online-shopping-for-womens-apparel/amp/ (www.forbes.com)
  11. ^ https://www.forbes.com/sites/joshwilson/2022/09/12/unique-roku-and-walmart-e-commerce-partnership-developing/amp/ (www.forbes.com)