Brief Summary:
- Walmart recently announced that it would provide its loyalty program, Walmart+, members with access to streaming video.
- With other perks like discounted gas prices and a Spotify trial, Paramount+ is now included at no cost.
- The FTC is looking into Amazon Prime as well.
What’s the Story?
After Walmart (WMT) announced a collaboration with Paramount Global (PARA) to offer the movie studio’s streaming service to its Walmart+ member loyalty program, shares of Amazon (NASDAQ:AMZN) are trading 2.2% lower at 11:33 a.m. ET on Wednesday.
Since few people join Amazon’s (NASDAQ:AMZN) own membership program to gain access to streaming video, the transaction is unlikely to pose much of a threat to AMZN Prime Video. It might seem like a great deal now that Walmart+ is $50 cheaper than Amazon Prime.
Reason for Amazon Stock Decline
In the past, Walmart has offered movie services to its consumers through a DVD rental business and a Vudu streaming service. They both floundered and were eventually sold off. Since Paramount+ is managed by a third party and Walmart merely provides access to it, this may be a better alternative for Walmart+ subscribers than the ad-supported level of Paramount.
However, the Federal Trade Commission is looking into Amazon Prime because of complaints about the service’s cancellation process. The investigation has broadened to cover additional subscription offerings, such as Audible, Amazon Music, Kindle Unlimited, and Subscribe & Save.
Over 150 million people in the United States pay $149 annually to join Amazon’s Prime membership program. However, just 11 million Americans use Walmart+.
What’s Next?
When considering whether or not to join up for AMZN Prime, most individuals are drawn in by the promise of lightning-fast shipping. The addition of streaming video to Walmart+ is unlikely to spark a flurry of new $98 annual subscribers.
Nonetheless, a free subscription to the Paramount+ Essential Plan (a $59 value) is a wonderful extra perk on top of the discounts on gas and the six-month Spotify trial.
Featured Image: Megapixl @Wolterk
Author Shariq Khan 
