Walmart is marking the fifth anniversary of Walmart+ by giving members more flexibility: starting September 15, subscribers can choose between the ad-supported Paramount+ Essential or Peacock Premium, included at no extra cost.

Meanwhile, Costco has begun strictly enforcing early shopping hours exclusively for Executive Members. Together, these moves highlight two very different approaches to driving value in membership models — one focused on added choice, the other on enforced exclusivity.

Walmart: Bundling Through Choice

Walmart announced that Walmart+ members will soon be able to select either the ad-supported Paramount+ Essential plan or Peacock Premium as part of their membership. Subscribers may switch between the two streaming services once every 90 days.

The new option marks Walmart+’s fifth anniversary and expands on a bundle that previously only offered Paramount+. Importantly, pricing remains unchanged at $12.95 per month or $98 per year.

The service continues to include other core benefits, such as free grocery delivery, free shipping with no minimum order, fuel discounts, and prescription savings. By adding flexibility without raising prices, Walmart is clearly aiming to boost engagement and retention.

Costco: Exclusivity Through Enforcement

Costco, by contrast, has taken a harder line. As of September 1, only Executive Members — who pay $130 annually versus $65 for Gold Star or Business memberships — can enter warehouses during early access hours. Gold Star and Business members are now restricted to regular opening times.

The rule was introduced earlier this summer but was loosely enforced during a grace period. September marked the beginning of strict enforcement at warehouse doors, with non-Executive members turned away if they attempt early entry.

Executive Members represent nearly half of Costco’s subscriber base but deliver a disproportionate share of sales, making enforcement a strategic push to strengthen tier economics and encourage upgrades.

Industry Context

The two announcements underscore diverging strategies in subscription and membership design:

• Walmart+ is layering in additive value, expanding its bundle by giving all members access to more choice and flexibility.

• Costco is enforcing exclusivity, drawing sharper lines between tiers and requiring staff intervention to uphold the policy.

Both approaches highlight how subscription and membership businesses are experimenting with levers of retention and monetization. Where Walmart is betting that flexibility deepens engagement, Costco is relying on exclusivity to push upgrades and reinforce premium tiers.

INSIDER TAKE

For subscription executives, these developments illustrate critical strategic contrasts:

• Flexibility vs. Restriction: Walmart’s quarterly streaming switch is designed to feel empowering, while Costco’s early-access rule creates a clear sense of exclusion. Both approaches can drive results, but they trigger very different customer emotions.

• Perceived Value vs. Perceived Penalty: Walmart enhances value without changing price, framing the perk as a reward. Costco introduces friction for lower-tier members, risking pushback but betting the exclusivity will drive upgrades.

• Tier Management Lessons: Costco demonstrates the revenue potential of enforcing premium tiers — but also the reputational risk. Walmart shows how a flat membership can still grow stickier through partnerships and flexible benefits.

• The Bundling Imperative: Walmart’s partnership with both Paramount+ and Peacock reflects a larger trend: cross-industry alliances are becoming table stakes in consumer membership models. For subscription leaders, the lesson is to evaluate not just what’s bundled, but how much flexibility customers have in consuming those bundles.

The takeaway: loyalty programs and memberships are evolving in two distinct directions — additive flexibility and enforced exclusivity. Both can work, but each carries very different risks and rewards.