US retail giant Kroger is reportedly in talks with the Walt Disney Company to offer the Disney+ streaming service as a benefit to paying members of its Kroger Boost grocery delivery programme.
The discussions, reported by Bloomberg, are in the early stages but could see Kroger Boost subscribers gain access to Disney+ at no additional cost this year.
This move comes as retailers look to enhance their membership programmes in order to compete with e-commerce leader Amazon.
Kroger launched its Boost programme in 2022, offering tiered subscriptions with free next-day or same-day delivery on groceries.
The programme has reportedly exceeded expectations, with members saving more than $115m in its first year.
Adding a popular streaming service such as Disney+ could significantly boost the value proposition of Kroger Boost.
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By GlobalDataThis strategy aligns with a broader trend in retail, where companies are offering perks, including gas savings, travel rewards, and now, access to streaming services, to differentiate their membership programmes.
Walmart+ partnered with Paramount+ in 2022 and Instacart offered Peacock to its paid members last year.
The potential deal with Disney reflects the growing importance of streaming services for consumers.
Disney+ boasts a strong content library and continues to expand, with CEO Bob Iger confident in its path to profitability by the end of financial year 2024.
By offering Disney+, Kroger could attract new members and incentivise existing ones to stay subscribed.
However, the negotiations remain ongoing and there’s no guarantee of a final agreement.
With competition in the grocery and streaming markets fierce, this potential partnership is one to watch as it could reshape the landscape of customer loyalty programmes.