Kroger To Boost Customer Perks With Disney+ Streaming: Report
Portfolio Pulse from Shivani Kumaresan
Kroger Co (NYSE:KR) and Walt Disney Co (NYSE:DIS) are reportedly discussing offering Disney+ streaming service to Kroger Boost members at no extra charge. The talks are in early stages, aiming to enhance value for Kroger's grocery delivery program subscribers. This move follows a trend among U.S. retailers like Walmart Inc (NYSE:WMT) and Instacart, who have added streaming services to their membership programs to compete with Amazon.com Inc (NASDAQ:AMZN) and improve customer loyalty. Kroger Boost, launched in 2022, has exceeded expectations, saving members over $115 million in its first year. Disney aims for its streaming segment to be profitable by the end of this fiscal year.
May 02, 2024 | 9:44 am
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POSITIVE IMPACT
Walt Disney Co is reportedly in talks with Kroger to offer Disney+ streaming service to Kroger Boost members, potentially expanding its subscriber base.
By partnering with Kroger to offer Disney+ to Kroger Boost members, Disney could see an increase in its streaming service's subscriber base, contributing to its goal of streaming segment profitability by the end of the fiscal year. This strategic move could positively influence Disney's stock in the short term by expanding its market reach and leveraging Kroger's customer base.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Kroger Co is in discussions with Disney to offer Disney+ to Kroger Boost members, aiming to enhance its grocery delivery program's value.
The potential partnership with Disney to offer Disney+ to Kroger Boost members could significantly enhance Kroger's value proposition, potentially increasing customer loyalty and attracting new subscribers to its delivery service. This move could positively impact Kroger's stock in the short term as it demonstrates the company's commitment to expanding services and competing with major e-commerce and retail players.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Amazon.com Inc's competitive presence has prompted retailers like Kroger and Walmart to introduce membership programs with added benefits, such as streaming services.
Amazon's dominance in e-commerce and its Prime membership benefits have led competitors like Kroger and Walmart to seek ways to enhance their own membership programs with additional services, including streaming. The direct impact on Amazon's stock is likely neutral in the short term, but it highlights the ongoing competition in the retail and e-commerce sectors.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40
NEUTRAL IMPACT
Walmart Inc, similar to Kroger, has introduced streaming services to its membership program, indicating a trend among retailers to enhance customer loyalty.
Walmart's addition of streaming services to its Walmart+ program reflects a broader trend among retailers to incorporate value-added services to compete with Amazon and improve customer loyalty. While the direct impact on Walmart's stock might be neutral in the short term, it underscores the competitive landscape in the retail sector.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50