Interview Synopsis

Disney – earnings analysis & Disney+ update

  • Multi Asset
  • TMT
  • Global

Third Bridge Forum interviewed the former VP of Digital Strategy for Business Planning and Operations at Disney-ABC Television Group on Disney’s newly announced streaming platform, Disney+. The specialist first gave an overview of the competitive dynamics between Disney, Netflix, Apple and Amazon, and the potential impact Disney+ would have on cable providers.

How Disney+ is Competing with Netflix, Apple and Amazon

When questioned on the key trends found in the direct-to-consumer (D2C) streaming industry, the former VP outlined the recent phases of evolution for streaming video services. He suggested that the current trend for service aggregation would likely drive consumers to find a method for managing their various subscriptions. As a result, he expressed the belief that virtual multichannel video programming distributors (vMVPDs) – otherwise known as “skinny bundles” – would become increasingly popular.

Consumer mindshare of specific streaming services will be integral to their success, proposed the specialist, and “there are very few companies with the scale of content awareness, recognition and fandom as Disney”. Despite this, the moderator probed the former VP further about Disney’s total addressable market (TAM) and the company’s ability to compete with the likes of Netflix.

The specialist explained that Disney’s potential plans to bundle its OTT platform with ESPN+ and Hulu could make its initial, lower price point even more attractive to potential consumers. The former VP continued by considering whether Disney+ would be complementary to other streaming services such as Amazon, or whether consumers would switch solely to Disney+. The specialist explored the divide between domestic and international consumers, noting that this would hinge on local launch strategies for pricing and content.

Finally, the specialist explained the methods Disney could employ to make its content more sticky; whether Disney+ could be used as a loss leader for Disney’s merchandise and experiences; and his outlook for Disney over the next seven years.

To access all the human insights from Third Bridge’s Earning Analysis and Update on Disney Interview, click below to view the full transcript.

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