The Walt Disney Company (NYSE:DIS) is reportedly considering a new membership programme offering discounts and perks to various products in a bid to encourage customers to spend more on streaming, theme parks and resorts.
It would be similar to Amazon.com Inc (NASDAQ:AMZN)'s Amazon Prime, which offers its members benefits such as free shipping.
Members could receive discounts on Disney+ subscriptions, theme park tickets, and merchandise for a monthly or annual fee, though discussions are still in the early stages, according to a report in the Wall Street Journal.
Disney's chief communications officer Kristina Schake confirmed Disney is considering the option, telling media, "Technology is giving us new ways to customise and personalise the consumer experience so that we are delivering entertainment, experiences and products that are most relevant to each of our guests."
"Disney is more than a brand to our consumers, it’s a lifestyle, and we are exploring how to better serve them across our many touchpoints. A membership programme is just one of the exciting ideas that is being explored..."
The WSJ report claims Disney is also developing a retail component to enhance Disney+ itself, which will allow subscribers to purchase shirts, themed accessories, and children's costumes that relate to shows on the service through shopDisney, with the feature likely to be introduced before end-2022.
As the saturation rate of streaming services rises, additional revenue streams are being explored to both differentiate themselves and maintain profitability.
Disney's diversified portfolio could benefit from a membership service like Amazon Prime to make recommendations for new shows, products, etc.