The streaming space is seeing another shakeup as Walmart announces a partnership with Paramount+ to add streaming content to the Walmart+ subscription program. Walmart has reportedly been looking into adding streaming to its membership program in order to compete with Amazon Prime, which already boasts shipping, grocery, and streaming perks. Will this deal be enough to make Walmart competitive with Amazon, and will it make Paramount a bigger player in the streaming space? How could it alter the streaming landscape? Seth Schachner, Digital Business Executive and Managing Director at StratAmericas, joins Closing Bell to discuss. 

Closing Bell

Walmart+ Announces Partnership With Parmount+, But is it Enough to Compete With Amazon Prime?

Welcome back to closing bell on cheddar news, everyone, the streaming landscape keeps shifting this time as a retail giant announces a deal. As part of its membership program, walmart says it's partnering with Paramount Global to add paramount's ad supported streaming tier to the walmart plus program, giving those members access to streaming content and similar to how amazon Prime members can access both free shipping for products and also watch amazon prime shows and movies. Walmart has reportedly been looking to add streaming to its service to compete directly with amazon, but only time will tell if this can draw subscribers and make a sizable impact on viewership for paramount. All right, joining us now, Seth Shatner, a digital business executive and managing director for Strat. America is a firm focused on business development and strategy. So thanks so much for joining us. Want to get your thoughts on this field. Of course, do you think this was predictable because we've seen this streaming space really heat up and we've heard about mergers and acquisitions on the horizon, Were you thinking this partnership was something that we would see inevitably, I don't know if it was on the radar per se, but it's definitely, you know, it's a classic bundling deal. Um, affiliate deal that, you know, it's gonna certainly help add users and subscribers to to paramount viacom. And it'll also certainly ad revenue as well. Um, and you know, I just think it's a, it's a sign of how competitive, you know, the spaces that, that the studio back streaming services, you know, are really now just looking to outbound business partner's loyalty partners to try and generate subscribers. Um, and also loyalty for the brands that are working with. So it, it makes a ton of sense. I don't know if it's a total game changer, but it's, it's a smart move for sure for, for brackish and, and, and paramount plus to move forward in the space. Yeah, I think especially for walmart to maintain their subscriber base for the walmart plus membership, it definitely adds another benefit there, especially for those who love streaming, not only these shows, but also live sports on some level. Um, I do wonder though, I saw that amazon also had a partnership with paramount Plus, do you see that being at all a hindrance to the impact of the overall deal? I don't know if they would hinder the deal, but, you know, there's some exclusivity to the deal, which, which, which I assume is, is, is more about paramount, not being able to go to to prime, you know, in exactly the same way over time. Um, I think there's a lot of, you know, sort of co optician and cross streams in terms of trying to get subscribers that are out there. Um, so I don't know if it's a hindrance, but, you know, look, this space is tremendously competitive and you're starting to see, you know, a lot of customer churn between these services even with the biggest, which is netflix. So it makes total sense if you're paramount to try and ally with, you know, someone who's been a part reviewers for a long time. They, they sell consumer products, everything from, you know, old hold of entertainment, home video products to to Nickelodeon merchandise. So it's, it's a very sensible thing to do. And I think, um, you know, the walmart prime competition is an interesting one. Amazon is obviously huge, but I think they're taking a little bit of a lower priced option. It's, it's an ad supported. You have to watch ads if you take this one basically. Um, so it's not the full on premium service without ads. Yeah. And Seth we've seen even on the grocery side of the business, a lot of these consumers in the mid and higher income levels kind of shifting toward some of these more bargain friendly brands and they're starting to make up a lot of the customer bases. Maybe some of the lower income members begin to move away and really focus on budgets. I do wonder for you. You mentioned this not being an all out game changer. Do you think a partnership like this is enough? A walmart plus paramount plus is enough to overtake an amazon amazon prime? Probably not. No. I mean, I think that, you know, I, i in some ways touched walmart's online services and digital services over there. I come from the music industry and you know, I think, um, I don't think there and I say this respectfully because they're awesome company and retailer, but I don't think like their core competency is making movies or making videos or even pulling individual video services together. I think I think Prime is actually done uh quite a spectacular job of their group, you know, producing their own pictures and specials and you know, they're more aligned with, with apple and netflix if you will. So, so probably not. But I think if if they do start to build a lot of other content partners in there, I mean the news is reported that Comcast NBC has been talking, Disney has been talking um let's see what comes together, if that's a collection of streaming services, Just a random store, if that's a that's a new walmart edition, I think there's certainly some potential there. Yeah, I'm wondering if you can build on that and talk more about what Paramount Global gets out of this deal because someone could argue they have a relatively deep well to pull from, they have an affiliation with CBS and also the family of Viacom and all those different shows and properties to really get the word out. And I think, you know, awards season, we were seeing everything about this platform during some of the different award shows. What do they get out of this deal with walmart? So they probably get, I mean, these are kind of classic bundling deals, so, and I'm not privy to the private details of of what bob packages, business development, business affairs team pulled together, but it looks like they've they've got a lot of really smart thinking in it. They probably get a wholesale price for a basket of paramount plus content, which sounds like it's the ad supported version of it basically. And that that prices between walmart and paramount and you know, that consumers won't necessarily feel it, it'll just be part of part of that package, basically. So I would say they get that per user and they'll certainly get an enhanced subscriber account out of it, whether, you know, people use it a lot, you know, there's a concept called Breakage um in the media business, I think is another question. I've seen plenty of examples with mobile carriers that do this with Spotify music apps like these are where that's just it, you get a deal and people don't necessarily use it. So I've seen it kind of range um you know, all across the board. But to your point, I think if um because you know subscribers or users are really looking for value, this is a really positive thing. Viacom's and Paramount's awesome company. And I think cbs which I don't think the live events are part of this, but but there's a ton of stuff in their archive in their catalog that they could potentially bring Star Wars The Godfather. So for sure. There's a lot of value there. Alright, Really great to get your perspective that Seth Shatner, a digital business, exact and managing director at Stratton America's, thanks so much for joining us.