Without much fanfare, Walmart unveiled a new edition of its Google TV stick with updated specs and a revamped remote, competing directly with Amazon’s Fire TV Stick.
While the competition for TV sticks probably won’t determine the fate of these two retail giants, the new design of the remote hints at where Walmart’s ambitions may lie, not just for goods but also for content and streaming services. The device’s design is mostly unchanged, except for one meaningful button. Walmart’s new streaming box offers a Paramount+ button in the place of what had been a shortcut to Amazon Prime Video.
Walmart stepped into streaming last August when it announced that Walmart+ members would receive access to an Essential Paramount+ subscription at no additional cost, mirroring how Amazon Prime has both shopping and streaming components in the same subscription.
“With the addition of Paramount+, we are demonstrating our unique ability to help members save even more and live better by delivering entertainment for less,” said Chris Cracchiolo, senior vice president and general manager of Walmart+, in a press release. “Paramount+ has the premium content and broad appeal that our members are looking for.”
The newly released streaming box is almost certainly a nod to the potential membership-boosting power of the Walmart-Paramount+ relationship.
Amazon is clearly winning regarding the number of subscribers, even though about 1 in 5 consumers maintain subscriptions with both retail giants. One-third of consumers remain unsubscribed to either service, representing an opportunity for Walmart — or Amazon — to gain ground.
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The rerelease of Walmart’s streaming box comes just as Amazon is upping its content game even further. One year after acquiring MGM for $6.5 billion, Amazon Studios is reported to be in the process of or in discussions about developing multiple film and TV projects based on the nearly 100-year-old Beverly Hills-based studio’s titles. In February, PYMNTS reported how Amazon’s cross-selling opportunities aimed at members who sign up for video or streaming offers such as “Thursday Night Football” have led to increased purchasing of everyday products on Amazon’s website.
For Walmart, content and streaming services are still the Achilles’ heel of its omnichannel strategy. Moves such as this launch and recent updates to its website and app are revamping its online presence to better complement its strong offline presence, meaning that this small step into streaming services may play out well. The demand for subscription streaming services remains high despite a challenging year for subscriptions in general. PYMNTS’ research found that most consumers using subscription services use streaming services (66%), holding a significant edge over other services such as online gaming (34%), consumer retail products (24%) or digital media (24%).
Changing a button on an updated TV stick won’t give Walmart an advantage over Amazon — or a prominent position — overnight in the highly competitive content streaming market. Yet this move illustrates how the retailer wants to expand — and not solely rely on in-store shopping.
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