BofA analysts: Walmart may expand advertising partnerships instead of launching its own streaming service
In the United States, Walmart may focus on expanding its advertising business and partnerships with media companies rather than creating or acquiring its own streaming service. This assessment was made by Bank of America analysts led by Jessica Reif Ehrlich, MarketWatch reports.
According to the analysts, Walmart remains the most important physical retailer, one of the largest digital advertising platforms in the United States, and the leading retail media network outside Amazon. This area involves brands paying for advertising and sponsored search results on the retailer’s websites and apps.
Growth of Walmart Connect
Last year, Walmart’s retail media segment generated $6.4 billion in sales and grew more than threefold over the previous four years, BofA noted. Analysts estimated the company’s advertising business margin at about 70%. Around 150 million customers shop at the chain’s stores in the United States each week, giving Walmart a significant volume of shopper data.
In 2024, Walmart acquired connected TV platform Vizio and, in August, Vibe.co, a streaming advertising platform aimed at small businesses. The company also entered into advertising partnerships with Disney and NBCUniversal. Members of the Walmart+ program can choose access to Paramount+ Essential or ad-supported Peacock Premium at no additional cost.
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Streaming as a more complex option
According to BofA analysts, launching or buying a streaming service would represent a significant strategic and cultural shift for Walmart. Such a move would require substantial investment and consumer marketing, and could also create reputational risks for the brand.
The experts also pointed to intense competition in streaming, where companies with developed studio and production infrastructure already operate. Vizio’s household reach, they said, is still smaller than that of other television and streaming networks, while sports rights require firm commitments and production spending.
At the same time, Walmart could develop short-form video content about home improvement or gardening in cooperation with suppliers. BofA believes that the least risky option for the company is further expansion of Walmart Connect. Walmart could also strengthen its role as a major provider of advertising data for agencies and connected TV platforms.
