PYMNTS MonitorEdge May 2024

Report: Kroger and Disney Exploring Streaming Service Offering

Kroger store

Kroger and Walt Disney Co. are reportedly exploring a partnership that would offer the Disney+ streaming service to subscribers of Kroger’s grocery delivery program.

If a deal is struck, Kroger Boost subscribers would get access to Disney+ at no additional cost, Bloomberg reported Wednesday (May 1), citing unnamed sources.

Neither Kroger nor Disney immediately replied to PYMNTS’ request for comment.

Retailers have been adding paid subscriptions to generate additional revenue and greater customer loyalty, according to the report.

They have also added perks like gas savings, travel rewards and streaming service access to make those membership programs more competitive, the report said.

For example, Walmart added Paramount Global’s Paramount+ to its Walmart+ program in 2022, and Instacart added Comcast’s Peacock for its paid subscribers in 2023, per the report.

PYMNTS Intelligence has found that the rise of digital commerce and the increasing demand for seamless experiences has made it necessary for retailers to prioritize speed and ease to attract and retain customers.

Offering subscription services that simplify the purchasing process and provide regular access to desired products has become a winning strategy for top-performing merchants, according to “Decision Guide: The Retail Subscription Features That Make Top-Performing Merchants,” a PYMNTS Intelligence and collaboration.

Kroger saw a 24% increase in delivery sales year over year during the fourth quarter, driven by initiatives like Kroger Boost and its investments in first-party fulfillment through its automated distribution centers, the company said when announcing its earnings in March.

“Digital is an important growth accelerator in our business, and in 2024 we expect to deliver another year of double-digit sales growth as we grow volume, particularly in our Kroger Delivery network,” Kroger CEO Rodney McMullen said March 7 during the company’s quarterly earnings call.

When Walmart announced its partnership with Paramount+ in August 2022, Chris Cracchiolo, who was senior vice president and general manager of Walmart+ at the time, said: “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.”

When Instacart announced the addition of Peacock to its membership benefits in November, PYMNTS reported that subscription services were increasingly tapping partnerships across industries to expand their audiences.