Success stories (U24: D1)

Learning Outcome 1 (U24): Understand the products that are produced within and across media industries 

D1 (U24): Discuss how successful media concepts have been positively exploited across multiple media industries 

Disney Plus

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The American-based, subscription video-on-demand service primarily distributes films and series produced by Walt Disney Studios. It was launched in March 2020 in the United Kingdom, just in time for the first Covid 19 lockdown, and is available world-wide. 

Audiences

Disney+ appeared to launch with three groups in mind – families with young kids, Marvel fans and Star Wars fans. Beyond that, Disney hasn’t focused on demographics who aren’t interested in that type of content. That puts the pressure on to retain subscribers and attract new subscribers while competing with Netflix, HBO Max and others.

The general conclusion of the study is that Disney+ has a higher percentage of white users under 35 than the average streaming service. For example, Hulu draws more Black viewers than Disney+ but less Hispanic streamers. 

Age Demographics for Disney+ Users in US

2-17 45% (vs 19% for all streamers)

18-34 23% (vs 23% for all streamers)

35-54 23% (vs 30% for all streamers)

55+ 9% (vs 28% for all streamers)

Clearly Disney+ users tend to be younger than your average streaming service. With a whopping 45% of streamers being under the age of 18. Those aged 55+ makeup more than a quarter of all streamers, but only 9% of Disney+ users.

Race and Ethnic Demographics for Disney+ Users in US

White 69% (vs 60% for all streamers)

Black 10% (vs 17% for all streamers)

Asian 2% (vs 4% for all streamers)

Hispanic 17% (vs 17% for all streamers)

Other (Non specific) 2% (vs 2% for all streamers)

According to Nielsen’s data for June of 2021, Disney+ has a larger percentage of White users than the average of all streamers and falls below the average percentage for every other specific racial and ethnic demographic.

EU - Disney would not comment on subscriber forecasts, but Iger did speak broadly about findings from the Netherlands trial. “The demographics were far broader than a lot of people expected them to be,” he said. “This is well beyond kids and family….This is a four-quadrant product, with adult men and women as well as kids [and] families watching or using the service.”

Platforms

Disney+ has had success due to the range of platforms it is available on. It is available on web browsers, mobile phones and tablets (through the app) smart TVs, gaming consoles, and other streaming devices. As the brand is so accessible on a range of devices it targets a mass audience. 

One way people may choose to watch titles on Disney is through downloading. The smartphone/tablet app allows users to download content and watch it offline. This allows users to enjoy watching titles on-the-go, without wifi or data. This may target an older demographic, as users can download a movie, and watch it on the train, whilst traveling to work. However, a disadvantage of downloading content is that it takes up a lot of storage on devices. For example, downloading a 2-hour length movie may take up 1.5GB on a smartphone. As a result, users may be hesitant in downloading a few movies as it will take up too much space on their device, and they can't use their phone properly.

Similarly, people may decide to stream titles from Disney+ instead of downloading it. An advantage of this is that it can allow for connectivity and bonding with others. As streaming can be done on smart TV's, Disney +'s target audience can enjoy the platform together, bonding over their shared appeal for the content on the platform. It also saves storage space on platforms, allowing for more content to be watched when it needs to be downloaded. However, a disadvantage of streaming is that it relies on WiFi. Therefore, if a platform is having difficulty connecting to the internet, the titles will not load and users can't have an enjoyable experience with Disney+.

Content

A Disney+ subscription will allow up to 7 profiles to be created. Each profile can be given a name, Disney avatar and will store their watch lists etc. 4 Screens can access Disney+ at any one time.  Which is more than the basic packages for other streaming platforms like Hulu or Netflix. This is a reason why people may choose to invest in a Disney+ subscription as opposed to other streaming platforms.

Disney+ offers an incredible amount of content, with hundreds of movies and shorts from Walt Disney Studios, plus thousands of episodes of television from Disney’s many different studios including Disney Channel, ABC, FX, 20th Television and more. There is content on Disney+ from the six core brands offered, Disney, Pixar, Marvel, Star Wars, National Geographic, and Star. 

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Google Images

Disney+ targets a range of audiences. One reason is because it has a child setting, as well as a regular setting. On the children's account, titles are only shown if they are rated for General Audiences. Titles are sorted into categories, such as 'Princesses', or 'Super Heroes'; this makes it extremely clear for a young audience to navigate the application, and find what they are looking for. Additionally, parents can control the age rating of the content their children are watching on the account.

It also targets an older demographic. With content from Star, or National Geographic, adults can choose from a range of titles that are not just Disney originals. This is a unique selling point to Disney+, and a reason why individuals may choose Disney+ over Netflix, for example. For example, documentaries are available. True series and movies, such as 'The First Wave' target an older audience as they can educate themselves on current issues in society. This links to convergence, as users don't necessarily need to go to different channels for different uses; whilst in the past, in order to learn about true crime or current affairs, people would go to the news channel, streaming live on TV. However, now they can access documentaries on the platform, Disney+ to further their knowledge and education.  

While the majority of content is identical around the globe, such as the Disney+ Originals, there are some major regional differences once the general entertainment brand Star was added in February 2021. Most content differences are due to localised creative treatments or varied rights that may make certain content unavailable for streaming in some markets.

Where is it accessible 

Disney+ is currently available in 61 countries across North America, Europe, Asia/Pacific, and Latin America.

Disney Plus (Dec 27, 2021) is now live and available to stream in the US, Canada, the Netherlands, Austria, Germany, Italy, Spain, Switzerland, France, India, Belgium, Denmark, Iceland, Finland, Norway, Portugal, Sweden, United Kingdom, Ireland, Isle of Man, Monaco, Wallis and Futuna, French West Indies, French Guiana, New Caledonia, Japan, Indonesia, Latin America, Réunion, Mayotte, Mauritius, Singapore, Hong Kong, Taiwan, and South Korea.

Disney+ is available worldwide in order to target a mass audience and bring in a large revenue as a result. One way audiences from around the globe are targeted is through subtitles. Whilst most titles on the platform are in English, most titles have 16 or more languages in subtitles. Not only does this target audiences that do not speak the languages of the original title, but people with certain needs. For example, if someone is deaf, they likely cannot hear what is being said in a movie. They can read the subtitles to make sure they aren't missing out on the enjoyment from watching Disney+, and feel this platform includes them and treats them equally with anyone else. 

An in-depth analysis of Disney+ launch in Europe & Covid-19’s impact:

Disney+ is to be rolled out into 42 countries across Europe and MENA this summer (2022), with countries including Poland, Hungary, Turkey and South Africa among the launches. The expansion will see the fast-growing streamer also become available in countries including Croatia, Greece, Czech Republic and Bulgaria, adding to the 18 European markets it rolled into in November 2019.

Subscription fees

In the US, Disney Plus upped its price for the first time in March 2021. Bumping the monthly cost from $6.99 to $7.99 and the yearly commitment from $69.99 to $79.99, after a seven-day free trial. The price for Disney Plus's bundle with the ad-supported version Hulu and ESPN Plus also went up $1 to $13.99 a month. 

A solo subscription to Hulu goes for $6.99 a month. ESPN Plus is $6.99. The individual prices of those services added together comes to $21.97. Thus, bundling saves subscribers $8 a month, a 36% discount. 

Consumers can also get a free year of Disney Plus by signing up with Verizon. Netflix, the SVOD service Disney Plus is seeking to catch up to—or merely slow down— recently hiked its prices and now charges $15.49 per month for its standard tier, the HD version that allows two concurrent streams in the home. That means Disney Plus is nearly half the price of Netflix.

Growth over time

Statista

Disney is the largest media conglomerate in the world in terms of revenue. Having rights to many titles and other companies on their site (such as Star), Disney+ is able to provide users with a unique experience that targets a mass audience. Their growth has been so vast, not only because it was launched in more locations, but the range of titles being uploaded over time. 

In addition, they also had a pre-existing reputation. Being the largest and most popular animation studio, unlike Netflix which had to start from zero, Disney already had loyal consumers that would be attracted to the service. Furthermore, with the launch in the pandemic, everyone had plenty of free time to spend watching new movies and reminiscing on titles they have already seen. This is an explanation as to how many people subscribed to Disney+ in such a fast time. 

Marketing channels used to promote Disney Plus 

The focus was on digital channel, in particular social media. However, word-of-mouth, promotions/discounts and partnerships were also in the mix.

While Disney is known for its advertisements, actual advertising spend dropped in 2021. The company spent just over $238 million on digital advertising for Disney+ (such as YouTube adverts), which is down 39 percent from the same time in 2020.

Conclusion

Overall, Disney+ offers many advantages to target a mass audience. Only being a new platform, its vast growth can be explained due to the fact it offers many titles that target anyone. For example, teenagers may decide to watch programs such as 'Hannah Montana' as it is nostalgic and they grew up with it. Moreover, older people may want to watch documentaries by National Geographic to educate themselves on current affairs and the environment. It is accessible in a wide range of countries, which allows for connectivity and reinforces ideas of globalisation.