Walmart’s Strategic Expansion of Streaming Perks in Walmart+: A Competitive Edge in Retail Membership Wars

In the high-stakes battle for retail dominance, Walmart has deployed a calculated strategy to differentiate its Walmart+ membership program. By bundling streaming benefits with its core retail offerings, the company is reshaping the economics of loyalty programs and challenging Amazon Prime’s long-standing supremacy. The key lies in Walmart’s ability to leverage streaming as a value driver for price-conscious consumers while maintaining its physical retail advantages.

The Streaming Play: A New Layer of Value

Walmart’s 2025 expansion of its streaming perks—offering members a choice between Peacock Premium and Paramount+ Essential—has added a compelling dimension to its membership model. This “Video Streaming Choice” allows users to switch between platforms every 90 days, effectively providing up to $95.88 in annual savings on ad-supported streaming alone [1]. By integrating these services, Walmart+ now offers a broader entertainment ecosystem, complementing its existing benefits like free same-day grocery delivery and gas discounts. This move has accelerated membership growth, with the program surging from 11 million members in 2022 to over 20 million by September 2025 [3].

The strategy mirrors Amazon Prime’s long-standing inclusion of streaming content but tailors it to Walmart’s strengths. While Amazon Prime Video boasts a vast library of original programming and exclusive titles, Walmart’s approach focuses on affordability and convenience. For instance, Walmart+’s annual fee of $98 is 30% lower than Amazon Prime’s $139 [5], making it an attractive option for budget-conscious shoppers. This pricing advantage is amplified by Walmart’s physical store network, which allows members to access streaming benefits while also shopping for groceries and household essentials—a dual utility Amazon cannot replicate [4].

Retention and Acquisition: The Dual Subscription Trend

The rise of dual subscriptions—where consumers hold both Walmart+ and Amazon Prime memberships—has emerged as a critical metric in the retail loyalty wars. By February 2025, nearly 25% of U.S. consumers had both memberships, a figure that has nearly doubled since 2021 [1]. This trend is particularly pronounced among millennials, with 37% of this demographic subscribing to both services [2]. The appeal lies in the complementary nature of the platforms: Walmart+ dominates grocery shopping, while Amazon Prime excels in discretionary and high-ticket purchases [4].

Streaming benefits play a pivotal role in this dynamic. While Amazon Prime’s exclusive content (e.g., Prime Video, Prime Music) retains users for entertainment, Walmart+’s streaming perks act as a retention tool for its core retail business. Members who value the convenience of same-day grocery delivery and fuel discounts are less likely to cancel their Walmart+ membership, even if they use Amazon for other needs [6]. This “portfolio” approach to subscriptions has also driven spending: dual subscribers spend an average of $109.90 on their last retail purchase, compared to $75 for single-subscribers [1].

Financial Implications: Profitability and Advertising Synergies

Walmart’s streaming strategy is not just about customer retention—it’s a revenue generator. The company’s advertising arm, Walmart Connect, saw a 24% year-over-year growth in ad revenue in Q4 2025, reaching $4.4 billion globally [6]. This expansion into retail media is critical, as it funds Walmart’s logistics upgrades and AI-driven innovations. For example, AI-powered automation has reduced delivery costs by 40% per order and enabled 93% same-day delivery coverage in the U.S. [6]. These efficiencies are passed on to members, reinforcing the value proposition of Walmart+.

The financial calculus also favors Walmart’s lower-cost model. While Amazon Prime’s higher price point generates more direct revenue per subscriber, Walmart+ offsets this by attracting a broader demographic. For instance, 31% of Walmart+ subscribers earn under $50,000 annually—a segment Amazon has struggled to penetrate [3]. By catering to value-conscious consumers, Walmart is capturing market share in an era of rising tariffs and inflation, where price sensitivity is acute [2].

Strategic Positioning: A Long-Term Play

Walmart’s approach to streaming and membership economics reflects a long-term vision. Unlike Amazon, which relies on exclusive content to lock in users, Walmart is building a “convenience ecosystem” that integrates physical and digital benefits. The addition of Peacock and Paramount+ to Walmart+ is a strategic move to avoid direct competition with Amazon Prime Video while still offering compelling entertainment options. This allows Walmart to focus its resources on strengthening its core strengths—grocery delivery, fuel discounts, and store-based logistics—rather than investing heavily in original programming [1].

Moreover, Walmart’s AI-driven logistics and automation investments are creating a flywheel effect. Reduced delivery costs and improved inventory management enhance profitability, which can be reinvested into expanding streaming partnerships or further lowering membership fees. This virtuous cycle positions Walmart to sustain its competitive edge even as Amazon innovates.

Conclusion: A Reshaped Retail Landscape

Walmart’s expansion of streaming perks in Walmart+ is more than a tactical move—it’s a redefinition of how retail loyalty programs operate. By bundling entertainment with physical retail advantages, Walmart is capturing a segment of the market that Amazon cannot fully serve. The dual subscription trend underscores a shift in consumer behavior toward multi-platform loyalty, where value maximization trumps exclusivity. For investors, this signals a durable competitive advantage for Walmart in the membership wars, driven by affordability, convenience, and strategic integration of digital and physical assets.

Source:
[1] Nearly 1 in 4 Use Amazon Prime and Walmart+ for Peak Perks [https://www.pymnts.com/news/retail/2025/nearly-1-in-4-consumers-now-use-both-amazon-prime-and-walmart-for-peak-perks/]
[2] Amazon Prime dominates, but Walmart+ finds foothold among lower-income shoppers [https://www.emarketer.com/content/amazon-prime-dominates--walmart--finds-foothold-among-lower-income-shoppers]
[3] Walmart+ Expands Free Streaming: Members Can Now Choose Between Peacock and Paramount+ for Free [https://cordcuttersnews.com/walmart-expands-free-streaming-members-can-now-choose-between-peacock-and-paramount-for-free/]
[4] Amazon Prime vs. Walmart+: What's the Difference? [https://www.pcmag.com/how-to/amazon-prime-vs-walmart-plus-whats-the-difference]
[5] Amazon Prime Vs. Walmart+: Costs, Perks, Credit Card [https://www.cnbc.com/select/amazon-prime-vs-walmart-plus/]
[6] Walmart's AI-Driven Transformation and Its Implications for Retailers and Investors [https://www.ainvest.com/news/ai-general-merchandise-retail-walmart-ai-driven-transformation-implications-retailers-investors-2508/]