Walt Disney’s master plan for video streaming

 Media company The Walt Disney Co. (DIS) is optimizing its strategy to promote streaming television, which may give it a serious advantage over competitors. Walt Disney owns several diverse streaming service platforms. Thus, Hulu offers subscribers mainly TV series, ESPN+, on sports content. At the same time, Disney+ contains a massive collection of old and new films of famous Pixar, Star Wars, and Marvel franchises owned by the company. Thus, Walt Disney can take advantage of this and offer a subscription to a package of services at once, which can satisfy the broadest possible audience.

Consumers can accept such an offer positively since each Walt Disney service offers content that has no analogs. A recent study showed that subscribers tend to be highly loyal to essential services. For example, in the case of the Spotify music service, 75% of consumers think a music streamer to be mandatory and not just pleasant.As a rule, the ability to connect a package of services stimulates subscribers. The combined offer from Walt Disney will provide subscribers with more value and, at the same time, slightly reduce the likelihood of a quick shutdown. It is the retention of subscribers that is crucial in the streaming market.

Launch of Disney+, the company has been selling the package connection service as part of the offer in the USA. At the same time, users are offered a deep discount for such a connection. This year, Disney+ expanded to 42 additional countries, bringing their total number to more than 100. However, ESPN+ and Hulu are still mostly only available in the US. Suppose the company can expand these platforms to other markets, such as Europe and Asia. In that case, Walt Disney will be able to attract more subscribers and offer value through pooling opportunities.