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Walmart Inc. has found another electronic outlet for its merchandise. The retailing giant announced late Thursday it will sell so-called featured products on Roku Inc.’s streaming service, with payments handled by Roku Pay. San Jose, Calif.-based Roku claims to be the largest U.S TV streaming service by hours streamed. Well-known rivals include Netflix and Comcast.
The deal, which is exclusive to Walmart, will allow viewers to buy a product featured on a so-called shoppable ad. That will take them to a Walmart checkout screen that will have payment details pre-populated by Roku Pay. Tapping an “OK” button enters the order. Shoppers receive a confirmation by email that includes shipping and return rules. Both companies announced a pilot for the service.
For Walmart, the arrangement involves a venture in what it views as a promising but somewhat unknown merchandising channel. “No one has cracked the code around video shoppability,” says William White, the giant chain’s chief marketing officer, in a statement, “By working with Roku, we’re the first-to-market retailer to bring customers a new shoppable experience and seamless checkout on the largest screen in their homes—their TV.”
The venture into commerce on streaming TV comes as the online video market is growing fast as an alternative to movie theaters and conventional cable. Streaming subscriptions in the U.S. market grew 14% last year, to 353.2 million, according to the Motion Picture Association. Cable and satellite subscriptions, by contrast, dipped slightly, according to the MPA figures.
But as important as the number of potential shoppers is the ease of checkout, Roku and Walmart stress. “We’re making shopping on TV as easy as it is on social,” said Peter Hamilton, head of TV commerce at Roku, in a statement. “For years, streamers have purchased new Roku devices and signed up for millions of subscriptions with their Roku remote. Streaming commerce brings that same ease and convenience to marketers and shoppers.”
