The news: Disney is considering a membership program similar to Amazon Prime that would give subscribers access to discounts and exclusive perks for its streaming service, theme parks, merchandise, and resorts, per The Wall Street Journal.
The entertainment company is also looking to introduce commerce features to its Disney+ service before the end of the year.
The Prime playbook: Disney is the latest company to see Amazon’s enormously successful Prime program as a blueprint for driving sales and maximizing engagement. Amazon has used Prime to accelerate its flywheel of commerce, media, and advertising, which has enabled the giant to maintain its ecommerce dominance.
- Amazon Prime members spend, on average, four times more than nonmembers, per Bank of America. Shopping events like Prime Day also give the company a big sales and advertising boost.
- Perhaps most important, Prime gives Amazon access to a trove of customer data it can use to spur more spending, both from consumers and the advertisers looking to reach them.
- But copying Prime isn’t always a successful strategy: Walmart has struggled to grow Walmart+ membership, largely because the features it offers don’t align with how most people interact with the retailer.
Disney+’s commerce tie-in: By contrast, adding in-app commerce capabilities to Disney+ gives the entertainment company the opportunity to grow incremental revenues from subscribers. It’s also a chance to make money off users who otherwise wouldn’t engage with Disney’s other product offerings.
- The WSJ reports that Disney plans to add a QR code to its streaming service that, once scanned, will direct users to the Shop Disney website. The company has also floated offering subscribers exclusive merchandise tie-ins to Disney+ shows, like a toy darksaber from “The Mandalorian.”
- This is yet another move borrowed from Amazon: Prime Video’s X-Ray feature lets viewers buy items related to the shows they’re watching, such as NFL merchandise during a football game or items from fashion competition “Making the Cut.”