Walmart looks to streaming entertainment for future revenues

Robert Besser
13 Aug 2022, 20:38 GMT+10

Walmart could sign a deal with Disney, Paramount, or Comcast, with the aim of breaking into the streaming market, it was reported this week
A New York Times story, which cited industry sources, said Walmart recently held high-level talks with the three companies and is considering adding a streaming service to its membership program, Walmart+
Costing $12.95 per month, Walmart+ currently features free shipping on orders, discounts on fuel and a six-month Spotify membership

NEW YORK CITY, New York: Walmart could sign a deal with Disney, Paramount, or Comcast, with the aim of breaking into the streaming market, it was reported this week.

A New York Times story, which cited industry sources, said Walmart recently held high-level talks with the three companies and is considering adding a streaming service to its membership program, Walmart+.

Costing $12.95 per month, Walmart+ currently features free shipping on orders, discounts on fuel and a six-month Spotify membership.

News of the potential deal comes less than a week after Walmart announced lower profit forecasts and subsequent corporate layoffs of 200 employees.

In a statement last week, a company spokesperson told FOX Business, "We are updating our structure and evolving select roles to provide clarity and better position the company for a strong future."

"At the same time, we are further investing in key areas, like eCommerce, technology, health and wellness, supply chain and advertising sales, and creating new roles to support our growing number of services for our customers, suppliers and the business community," the spokesperson added.

Blaming inflation and high gas prices, Walmart lowered its second-quarter and full-year profit forecasts in late July.

In a statement, Walmart president and CEO Doug McMillon said, "The increasing levels of food and fuel inflation are affecting how customers spend, and while we have made good progress clearing hard-line categories, apparel in Walmart US is requiring more markdown dollars."