Disney+ is a global entertainment corporation and one of the world’s largest over-the-top (OTT) media providers of programmes and movies accessible via the internet. This means Disney+ provides access to live-streaming services and video-on-demand through subscription-based programmes that do not rely on cable, broadcast or satellite television platforms to deliver content to customers. This in turn means that customers can access the OTT service anywhere at any time via mobile devices, smartphones, laptops, games consoles and more. This is evidencing a further fundamental shift in behaviour relating to consumption of audio-visual products, and is creating a highly competitive market between OTT platform providers such as Netflix, HBO, Amazon Prime and Disney+. 

The big players compete to offer the best entertainment streaming services, which offer highly customized and on-demand video and film content to a growing number of customers. Payment methods (free supported by advertising revenue, subscription, pay on demand) vary, as does the content provided. The table below gives details of Disney+’s competitors.

Strategically, Disney+ wants to expand its reach to a wider range of customers through direct streaming services. 

Content and delivery channels are key areas where video-on-demand services compete. Disney+ has a strong portfolio of companies under its brand umbrella, which it can use to produce new content (e.g. 20th Century Studios, Marvel, Lucasfilm, Pixar and Searchlight Pictures). 

The marketing success of Disney+ OTT streaming services is primarily driven by content. At its launch in 2019, the service offered less choice of content to its customers than did its rivals, but ensured the available content was of consistently high quality, as Disney+ has access to an extensive library of content from the brands in its portfolio. The brand also understands its customers very well, and uses various methods and techniques to access customer feedback, such as social listening to garner feedback on its streamed content. Social listening by tracking social media posts and turning this information into useable data insights can instantly provide feedback on consumer comments about individual products and services. In this way, by developing a deep understanding of customer preferences, Disney+ has been able to deliver highly customized content to its subscribers. 

In addition to top-quality content, Disney+ has access to highly accomplished marketing communications teams, which are able to reach consumers around the globe through highly targeted omnichannel campaigns. To promote the launch of the Disney+ service, they used Facebook to drive awareness with desktop video ads, but at the same time used television, radio, outdoor advertising and digital display boards. The results of this strategy can be seen in the business’s increasing revenues, which rose from $4.5 billion in 2020 to $10 billion in 2021. 

Questions: 

1. Discuss the extent to which Disney+ is applying a market-orientated focus to generate business success. 

2. Make a case for Disney+ being considered a ‘high flyer’ when looking at its performance and use of marketing.  

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