The Evolution of Disney+ and Its Strategic Moves
When Disney+ first launched, it marked a golden age for fans of Star Wars and Marvel content. Walt Disney recognized the potential of its massive brands to attract a large subscriber base. During the initial years, there was a steady stream of new Marvel or Star Wars shows every few months.
One of the standout successes was "The Mandalorian," which not only helped boost Disney+ but also reignited interest in the Star Wars franchise during a time when the brand had faced some challenges. The show offered storytelling that was both grand and deeply personal, resonating with audiences.
However, most of the Marvel shows did not perform as well. This could be attributed to superhero fatigue or the fact that some characters, like She Hulk, didn't have the same appeal in a comedic format. Disney's initial strategy of flooding the platform with content was a one-time move. If Star Wars fans are given a series as compelling as "Andor" once a year, along with another strong show, they are unlikely to leave.
The same logic applies to Marvel. A single revival of a popular character like Daredevil has likely done more for member acquisition and retention than a series of shows centered around less prominent characters.
Expanding Content and Platform Integration
While Disney+ has reduced the number of original series based on its intellectual property, it has introduced other content to enhance the app and improve its value proposition. One of the strategies involves airing some digital content on ABC and other platforms. However, this approach must be used carefully, as viewers might be willing to wait for content if they know it will eventually be available elsewhere.
Airing select shows on broadcast or cable before a new season arrives can also help with sign-ups. Navigating this path is tricky, but Disney has started using Disney+ as a central hub for all its content. The company has been leveraging Hulu and ESPN to expand the Disney+ service.
During the company’s first-quarter earnings call, an executive shared insights on how the integration of Hulu into Disney+ has positively impacted user engagement and reduced churn. The presence of Hulu and the addition of sports content have made the platform more appealing. As the company looks ahead, it remains optimistic about turning the streaming business into a true growth engine.
Leveraging Disney's Vast Holdings
Iger believes that Disney's extensive portfolio allows it to offer something no other company can. He highlighted the combination of Disney+ brands, Hulu's general entertainment, and ESPN's live sports content. This unique mix sets Disney+ apart in terms of quality, volume, and variety.
Disney is using all its content tools to strengthen its position in the market. While the company encourages consumers to bundle Disney+ with Hulu and ESPN+, it also wants to protect its namesake streaming service. To achieve this, it has added a daily Disney+-specific edition of SportsCenter and some Hulu originals.
Iger outlined the plan to keep Disney+ strong and grow the business. This includes integrating Hulu and ESPN content on Disney+ for all users and creating a fully integrated experience for those who purchase the full bundle. The CEO emphasized the importance of improving the user experience, including steps such as paid sharing, personalization, and ad-tech advancements.
Global Expansion and Future Growth
Iger also mentioned the need for Disney to invest in local content outside the United States. The company has already started developing content in targeted markets, although the costs will become apparent once the shows air. This global expansion is seen as a key pillar of future growth. By investing in diverse content and expanding its reach, Disney aims to solidify its position in the competitive streaming landscape.