Disney+, Kroger Reportedly Eyeing Streaming Video Partnership

The Disney+ subscription streaming service is reportedly eyeing a partnership with supermarket giant Kroger to add its SVOD platform to the retailer’s home delivery service “Kroger Boost.”

The pact, first reported by Bloomberg News, citing sources, would include Disney+ free of charge for 12 months, rivaling Walmart’s deal with Paramount+ for its membership retail subscription program Walmart+.

Disney+ and Kroger have made no official announcement. Disney+ ended 2023 with 46.1 million North American subscribers, which was down 400,000 subs from the end of September 2023.

Paramount+ ended the most-recent fiscal period with 71 million subscribers, including 3.7 million net new paid additions. Parent Paramount Global has attributed increased SVOD subscribers in part to Walmart. The media company has also partnered with Walmart’s advertising business, Walmart Connect, to help target connected TV viewers with the streamer and its free ad-supported sister platform Pluto TV.

For Disney+, Kroger would be the platform’s second retail pact following its launch deal with Verizon, which saw the telecom’s wireless subscribers receiving a free year of the streaming service.

Last December, Disney+ reportedly offered $40 discounts to new Walmart+ subscribers for a limited time.

NBCUniversal’s Peacock service last November inked a deal with online retailer Instacart offering its users free SVOD service for a promotional period.

A separate PYMNTS Intelligence study found that survey respondents were more likely to use a bank’s credit card if it was tied to free third-party subscription streaming offers.

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Roku Partners With Kroger for Shopper Data Program

Roku June 8 announced the launch of a new shopper data program to make online TV advertising more precise and measurable for CPG (consumer packaged goods) marketers. Kroger, the nation’s largest supermarket chain, plans to join the program as the launch partner to build first-to-market targeting and attribution tools for streaming TV.

With more than 40 million registered users in the United States and 13.2 billion hours streamed during Q1 2020, streaming video pioneer Roku is looking to expand its media reach into TV advertising. Los Gatos, Calif.-based Roku’s ad-supported branded AVOD channel boasted 56 million viewers in 2019.

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Completion of the integration will give marketers access to Kroger data to measure ad campaign performance across the Roku platform, as well as tools from Roku to measure the effectiveness of linear TV built on what it claims is the largest licensed TV operating system in North America.

With the economy hit hard by shutdowns due to the coronavirus pandemic, CPG marketers are seeking advanced data solutions to make TV advertising more relevant and performance-driven.

Targeted advertising can increase effectiveness and minimize ad waste while achieving the scale CPG marketers require, according to Roku. For instance, Kroger could help marketers segment messages to high-volume category buyers, customers who occasionally buy a category, or those who buy a complementary category.

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The new shopper data program will provide Kroger sales information to help marketers make smarter media buying decisions. Marketers will be able to use the program to activate advertising across hundreds of ad-supported channels on America’s No.1 streaming platform (by hours streamed according to Kantar) and to tie ad exposure directly to in-store and online sales.

Kroger compiles consumer data from 60 million households across nearly 2,800 Kroger stores. With streaming TV (and AVOD) accelerating, Kroger said sought a market leader in OTT to bring accurate identity and viewing data founded in a direct consumer relationship.

“TV streaming brings digital-like precision to the big screen,” Cara Pratt, VP of commercial and product strategy, Kroger precision marketing, said in a statement.

“We believe that all TV ads will be targeted and measurable,” added Alison Levin, VP of ad sales and strategy, Roku. “Our new shopper data program will make it easier and more effective for CPG advertisers to shift spend to streaming and focus on value for every ad dollar spent.”