Walmart+, Microsoft and Android, Twitter Subscription Possibility

Walmart+
Yesterday, Walmart announced a subscription service that looks to be an Amazon Prime competitor. Walmart is an interesting competitor in this space, given the retail footprint they have. You could argue for the vast majority of commodity items and consumer packaged goods, a same-day option or in-store pickup could eat into some of Amazon’s share. Where it is unclear if Walmart+ can compete with Prime is in the breadth and depth of inventory and products in the Amazon Prime marketplace.

That being said, Walmart saw a distinct rise during the COVID-19 for both Walmart.com transactions and Walmart groceries as a part of online food delivery. Looking at the Second Measure data for both, Walmart saw both their average transaction value and average transactions per customer spike in April and continue to rise until late June. Interestingly, Walmart’s average e-commerce transaction per customer of 4.25 was very similar to Amazon’s pre-COVID average transactions per customer of 5.1. Amazon’s post-COVID transactions per customer rose to 8.25 as of mid-June, according to Second Measure data.

Amazon has a huge head start, but Walmart has what everyone believes Amazon will need more of in the future, which is more physical retail space. This is a good competitive battle, and if anyone can pressure Amazon, it is Walmart.

Microsoft and Android
For Microsoft’s upcoming Duo, dual-screen Surface device, it appears they are bringing more of the outside design house who helped with the Android integration in-house. This is an interesting move, and in my mind, crystalizes Microsoft’s commitment to Android as a platform to not just ship on future hardware but also as a platform for deeper integration of Microsoft services.

Another thing this cements in my mind is that Microsoft is not done making Android-based hardware products. Could they someday make a Chromebook? Crazy to think but not out of the realm of possibility. It will be interesting to see the market respond to Duo, but regardless of how the product performs, this is clearly not the last Android-based hardware product Microsoft will make. Which, all things considered, is a fascinating shift in strategy which reinforces Microsoft’s cloud and services first approach.

Both Windows and Android can serve to help better integrate Microsoft’s apps and services. While Windows is important, it’s clear for Microsoft the OS is not the end goal, but services are, and in that world platform-agnostic strategy and thinking are crucial.

Twitters Subscription Possibility
The Verge reported on a Twitter job listing that initially mentioned working on a subscription service, which has since been edited to not mention any subscription.

This is interesting news and an interesting potential feature for Twitter users and more pro Twitter users. While Twitter’s stock is up slightly on the news, I can’t see this appealing to more than a few percent of its user base. So while it could be material financially, it may not be a huge source of revenue.

While this is still just a rumor/speculation based on a job-posting, should it happen, it does raise questions as to how well ads or promoted content on Twitter is doing. Social media advertising as a whole seems to be in a bit of a slump, so it is interesting if Twitter is now seriously considering other revenue streams as potential ways to keep bringing in income.

Ultimately, I like the subscription idea for Twitter, I always have. Even if it appeals to small percentage of their user base, this group that would pay for it tends to be the most vocal and most influential. Giving them better tools, and an overall better Twitter experience could become a rewarding strategy for the platform as a whole and perhaps help grow their user base.