Disney’s streaming push is about more than subscriber numbers
With Disney Plus launching in the UK — and in other European markets — debate rages as to whether we will see the rise of a “Netflix killer”, and which brand will emerge as the ultimate winner.
Streaming services have been enjoying their moment in the sun. In the leading US market, subscriber rates for all services have been rising (though figures are somewhat distorted via subscriptions given free with phone or internet plans and, for example, Amazon Prime membership).
Received wisdom is that the streaming battle is fought over content, which is why we see brands spending vast sums to create original shows and hire top talent. Investment in production continues to generate headlines — and awards. Netflix’s supposed spending on content in 2019 was $15bn, with Apple TV Plus spending $7bn, and Amazon Prime $6bn.
So what does the picture look like for Disney?
While some brands — including Netflix — must create content (and drive awareness and interest) from scratch, Disney Plus’s advantage is that it owns and is known for its flagship content brands. It launches with an enviable stable: Disney, Pixar, Marvel, Star Wars, and National Geographic.
This content will be a major draw. These brands have huge fan bases who are already impatient to access new and exclusive content, such as Star Wars’ The Mandalorian. Initial subscriber numbers in Europe will no doubt be impressive — especially among family and youth demographics.
But the race is on. While it’s possible that households will subscribe to multiple streaming services, all brands will need to continue to produce fresh, exciting content to keep viewers interested and to hook new subscribers.
And the content battle is only a part of the story. The tenets of brand building hold just as true for the streaming space. Disney Plus starts from a good place: a parent company that’s relevant and distinctive in terms of what it stands for, and one that commands love and respect from its audiences.
And like Netflix, Disney Plus will offer a premium, ad-free experience. This, coupled with a strong parent company and stable of desirable content brands, should mean Disney Plus has a fair chance of success.
However, for Disney, the foray into streaming is about far more than subscription numbers. While Netflix is a pure play, Disney is thinking big. It understands that brand is a driver of business performance, and that successful brands meet their audiences wherever they are, to provide a 360-degree experience.
The company has so many more avenues through which it can monetise Disney Plus subscriber information, across any and all relevant touch points: toys, books, merchandise, music, theme parks, retail, hospitality, cruise ships — the list goes on. The House of Mouse clearly has its eyes on the total ecosystem — not just on streaming.
So the real story when it comes to streaming services may not be about picking the winner — it may be about picking the battle itself.
Main image credit: Getty