Walmart (NYSE:WMT) continues to roll out new perks for Walmart+ members. The latest video streaming benefit is the addition of Peacock for Walmart+ members. NBCUniversal’s (CMCSA) Peacock joins longtime partner Paramount+ as a part of the Walmart+ service at no additional cost. The extra video benefit begins on Monday.
“The additional option of Peacock Premium adds even more value and more choice to our membership, without raising the price,” stated Deepak Maini, senior vice president of Walmart+. “By offering the ability to switch between two top-tier video streaming services, we’re empowering our members to customize their entertainment experience and enjoy significant savings. This is just one of the many ways we’re evolving Walmart+ to meet the needs and wants of today’s consumer.”
The announcement was part of the retail giant’s celebration of the five-year anniversary since Walmart+ launched. Since its launch in 2020 with three core benefits, Walmart+ has rapidly expanded, now offering twelve benefits and counting, still for only $98 a year. Offerings include free same-day delivery on groceries and Rx, free shipping with no order minimum, deeper gas discounts, and 5% unlimited cashback through the newly announced OnePay CashRewards Credit Card.
In its latest rundown on Walmart+ memberships, Morgan Stanley said membership growth remains solid. In absolute terms, the firm’s survey points to ~26.6 million current members, which implies ~20% membership penetration of U.S. households or ~13% on an adjusted basis. Analyst Simeon Gutman said expanding the Walmart+ membership base is a key tenet of the company’s overall e-commerce flywheel because it profitably expands and densifies the delivery catchment areas around supercenters. Walmart+ membership is seen as acting as a catalyst for Walmart (NYSE:WMT) to leverage its top position in grocery to build customer loyalty and repeat-purchase behavior, as well as draw in share of wallet with middle- and high-income households. Walmart+ was also noted to create a high-margin recurring revenue stream.