The grocery giant Kroger Co KR and entertainment powerhouse Walt Disney Co DIS reportedly are in discussions to potentially offer Disney+ streaming service to subscribers of Kroger’s grocery delivery program, known as Kroger Boost.
The talks, still in early stages, suggest that Kroger Boost members may gain access to Disney+ this year without extra charge, according to a report from Bloomberg.
Kroger, headquartered in Cincinnati, has been contemplating this move following customer feedback, indicating an inclination toward expanding its services.
As per the report, both Kroger and Disney have refrained from commenting on the ongoing discussions. However, Kroger emphasized its commitment to seeking new avenues to enhance value for Boost members.
Retailers in the U.S. have increasingly introduced paid membership programs to enhance customer loyalty and augment revenue streams, attempting to keep pace with e-commerce giant Amazon.com Inc AMZN.
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The report further specified Walmart Inc WMT rolled out its Walmart+ program in 2020, later striking a deal for Paramount Global’s PARA Paramount+ in 2022, while grocery delivery service Instacart started offering Comcast Corp’s CMCSA Peacock to its members last year.
Kroger Boost, introduced in 2022, offers two membership tiers: $59 annually or $7.99 monthly for next-day delivery, and $99 annually or $12.99 monthly for same-day delivery, with undisclosed subscriber numbers.
The program, exceeding initial expectations, and reportedly saved members over $115 million in its inaugural year.
Disney’s CEO Bob Iger anticipates profitability in the company’s streaming segment by the end of the fiscal year, which concludes in September.
Kroger stock gained more than 10% in the last 12 months. Investors can gain exposure to the stock via First Trust Consumer Staples AlphaDEX Fund FXG and Invesco S&P 500 Equal Weight Consumer Staples ETF RSPS.
Price Action: KR shares closed lower by 1.10% at $54.77 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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