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Disney explores Amazon Prime-like membership program

Yahoo Finance’s Allie Canal joins the Live show to discuss reports that Disney is exploring an Amazon-like membership program.

Video Transcript

- OK. Disney may be taking a move out of Amazon's playbook. The media giant is reportedly exploring a membership program that would offer discounts and perks to a bundle of its streaming service, theme parks and resorts, and merchandise. Yahoo Finance's Ali Canal has the details. Ali, yeah, I mean, another way for Disney to suck even more money from human beings.

ALEXANDRA CANAL: That's the name of the game, Brian.

- It is.

ALEXANDRA CANAL: That's Disney's MO, and the "Wall Street Journal" reporting this Amazon Prime membership from Disney. It's still in the early stages, so to be determined how much a membership program like this would cost, when exactly it would launch.

But as you said, the whole point would be to create this long-term value for customers and really increase that stickiness across all of the Disney products and services, a.k.a. just suck out that money, have them spend more while they still can, and collect all that data. In the meantime, Disney already starting to experiment with this, for example, trying to get Disney+ subscribers to scan a QR code which links to the Disney shop so you can buy merchandise for all your favorite shows and movies.

And in terms of membership programs, Disney does have one for superfans specifically called the D23 Fan Club. That costs between $100 to $130 a year. But this new reported Amazon Prime-like membership would be targeted at the more casual Disney customer, according to the "Journal."

But overall, it does seem like everyone really wants to be Amazon these days. We do have Walmart+. That membership, we got details very recently that they just partnered with Paramount Global to add free Paramount+ subscriptions for those memberships. Obviously, we got Amazon with Amazon Prime, so really trying to integrate all the various technologies and learn so much more about customers and their behavior through the data.

- OK. And so for the customers, can they expect anything different, massively different, if we were to see this all bundled together? And what is out there in terms of what Disney is kind of looking through in its own data to say that this could be a success, this could be a hit? Is the community of Disney fanatics out there just that strong?

ALEXANDRA CANAL: Yeah. I mean, that's a really important question. And I think, for Disney, they're trying to see, look, if we have a Disney+ subscriber that watches "Frozen," how does that translate to how they spend at the parks? Are they spending a lot of money on "Frozen" toys, "Frozen" T-shirts?

And how does that translate, and how can we capitalize on that? Maybe, if that's what they're doing at the parks, we can lure them into Disney+ and vice versa. So that's one thing that they're going to explore.

In terms of what could be in this membership, there's going to be discounts. There's going to be freebies. Apparently, they're reportedly exploring maybe bundling in free Broadway tickets to Disney shows that are in New York City.

So that could be something that we could see-- so really just trying to decide, OK, how can we take all the different components of our business, provide those to customers, and then learn more in the process so that we can increase the stickiness, get them to spend more at all of our different places, all the different parks, all the different services that we offer?

So that's really the main driver here-- to be determined if it's going to work when it's going to roll out, but certainly something that they are really all in on, especially Bob Chapek.

- All right. It still will not get you discounts with the unlicensed Disney characters in Times Square. That's for sure.

- I love them.

ALEXANDRA CANAL: You don't want that.