From a personal perspective, Disney+ has all opportunities to unseat Netflix as the leader in video streaming. First of all, the contemporary development of the streaming service industry presupposes the attraction of customers through the brand’s reputation, quality of content, and consumer targeting. In relation to these aspects, The Walt Disney Company has several considerable advantages. It is a well-known international corporation with history and millions of lovers all over the world. It operates across four business units: media networks, studio entertainment, direct-to-consumer and international products, experiences, and parks.
At the same time, in relation to streaming, Disney+ surpasses other companies and stands apart from them being an optimal solution in its industry as it provides a combination of modernity and classics, creating an unprecedentedly high quality of entertainment (Agnihotri & Bhattacharya, 2022). In other words, this platform offers a wide range of exclusive content, from timeless classical movies to the latest releases, with a combination of accessibility and options provided by digital media technologies. In addition, with operation in all four quadrants, Disney+ aims to target literally all population groups covering all major audience demographics. In contrast with Netflix, Disney+ releases more kids and family-friendly content. At the same time, Marvel’s superhero blockbusters and Star Wars-based series also attract and unite people from various backgrounds. In combination with a cost-efficient subscription, the platform’s materials make it highly desirable for consumers who prefer the most convenient type of entertainment for all family members.
It goes without saying that Hastings and his team should consider the experience and competitive advantages of Disney+; however, responding to its development and entering a direct confrontation would be unreasonable. Since 2019, several entertainment conglomerates and technology giants will enter the streaming service space. In general, their strategies will presuppose the availability of predominantly exclusive content and comfortable conditions in relation to prices – thus, every platform will finally have its audience. In this case, Netflix should remain one of the players in the market and follow its strategies by producing and promoting its content. At the same time, it may try new approaches to generate its competitive advantages and unique values.
I think that with the development of technologies and digital media, the popularity of traditional media is inevitably decreasing. Netflix was a pioneer in the sphere of streaming services, and its dominance was obvious. It goes without saying that the production of content by traditional media companies will still be in demand; however, if they want to catch Netflix and attract a wider audience, they should enter the streaming service market as well with their unique benefits or generate other customer values.
First of all, the success of video streaming is determined by the variety of content and its accessibility. In other words, people are attached to streaming services for the opportunity to choose from big collections of audiovisual materials suitable for all demographic groups and watch them from various devices at a relatively small price at any time and in any place or without even leaving home. Other advantages of video streaming include the simplicity of use and user-friendliness, the availability to control playback and record content, and the accessibility of live events.
In general, the Disney-Netflix streaming war may be regarded as a source of data for in-depth analysis by other media players to learn from their mistakes. For instance, the latest research demonstrates that although new releases attract people’s attention and increase subscribers, 30% leave after several months (Walker, 2022). This means that customer choice is determined mostly by individuals’ preferences rather than the volumes of content produced. At the same time, this production has a negative impact on subscription fees, leaving people dissatisfied – they are forced to pay more for things they are not interested in. In this case, for Netflix and other media players, it may be more reasonable to target particular population groups to assess people’s ideas and opinions concerning the content, or offer subscriptions at highly affordable prices for particular content instead of monthly fees to increase customer loyalty and retention.
References
Agnihotri, A., & Bhattacharya, S. (2022). Disney: Restructuring for success with video streaming service Disney+. SAGE Publications: SAGE Business Cases Originals
Walker, R. (2022). Netflix and Disney face a growing challenge: Streaming mercenaries. Fast Company. Web.