Headquarters address: 500 S Buena Vista St, Burbank, CA 91521

Website URL: Disneyplus.com

Twitter: @disneyplus
Facebook: @disneyplus
Instagram: @disneyplus
Client description:
Since the introduction of online streaming services in the early 2000s, the industry has
grown vastly. More TV outlets and entertainment organizations like CBS, HGTV and
NBC are creating its own streaming services instead of partnering with established
companies such as Netflix, Hulu and Amazon Prime Video. Disney is joining those
companies by creating its own streaming service, Disney+. Disney’s new streaming
service will launch Nov. 12 and will feature past and new original movies and TV shows
for $6.99 a month.

Management:
Disney+ operates under The Walt Disney Company, therefore the companies share
management. Robert Iger is currently the chairman and CEO of the company, with the
support of 13 additional members of the executive leadership (The Walt Disney
Company, 2019).

Mission statement:
“The mission of The Walt Disney Company is to entertain, inform and inspire people
around the globe through the power of unparalleled storytelling, reflecting the iconic
brands, creative minds and innovative technologies that make ours the world’s premier
entertainment company.” (The Walt Disney Company, 2019)
History:
Walt Disney Studios was founded by Walt and Roy Disney on Oct. 26, 1923. After being
tricked out of their rights to Oswald the Rabbit, the studio’s first claim to fame, Walt
Disney vowed to always own his original work from then on. Disney’s next character,
Mickey Mouse was featured in Steamboat Willie and put the company on the map. In
1937, Snow White and the Seven Dwarfs jump-started Disney Studio’s animated movie
success. Now with a little under 750 movies, the company is a global brand. On Nov. 8,
2018, the streaming service Disney+ was revealed. The streaming service features all
past original Disney and Disney affiliate content and new original content. Disney+ goes
live Nov. 12, 2019 (D23, 2019).

Situation Analysis:
The market for video streaming is at
an all-time high and is projected to
grow substantially in the upcoming
years, a Grand View Research
report on the video streaming
market said. In 2018, the streaming
market size was valued at 36.64
billion and is expected to expand at
a compound annual growth rate of
19.6 percent from 2019 to 2025
(Grand View Research, 2019).
The streaming industry, as seen in
the chart, has both non-linear and
live video streaming. Live streaming
has become a more affordable and
accessible way for consumers to watch their preferred content rather than purchasing a
full cable package. Streaming networks allow consumers to access content from a
variety of different mediums including, smartphones, tablets, computers, etc. People are
no longer restricted to the television. Similar to live video streaming, non-linear video is
also anticipated to increase at a stable rate, the Grand View Research report said. Non-
linear video or content consumers can pick to watch on-demand, is what makes up
most content on the popular streaming networks like Netflix and Amazon Prime. These
companies increase the demand for this type of streaming by creating original content
and allowing all media to be accessible at a person’s fingertips. As Disney+ enters the
streaming industry, the company will face the streaming-giants: Netflix and Amazon
Prime.
Founded in 1997 by Reed Hastings (CEO) and Marc Randolph, Netflix is the largest
streaming service in the world with 151 million paid memberships in over 190 countries
(Netflix, 2019). The basic plan ($8.99) allows users to stream on one screen at a time,
the standard plan ($12.99) allows two screens and the premium plan ($15.99) allows
four. The streaming service features content that is both original and outside of its
brand. This could be competitive because Disney+ will not have content outside of its
brand unless consumers purchase the bundle with Hulu and ESPN Plus. Amid Disney’s
decision to phase out its content and cut licensing deals with the streaming service,
Netflix plans to spend 15 billion on original content in 2019 despite the company’s
acknowledgment that its original content hasn’t driven enough growth to justify the
money spent. “We think Q2’s content slate drove less growth in paid net adds than we
anticipated,” the company stated in its Q2 2019 investor letter (Netflix, 2019, p. 2).
However, the company believes it can remain a strong competitor as Disney+ emerges.
“From what we’ve seen in the past when we drop strong catalog content (Starz and Epix
with Sony, Disney, and Paramount films, or 2nd run series from Fox, for example) our
members shift over to enjoying our other great content,” the company said (Netflix,
2019, p. 4).
Another streaming giant that will compete with Disney+ is Amazon Prime Video. This
service comes with an Amazon Prime membership -- a deal that gives consumers
benefits in both the streaming and retail industries. Amazon Prime has over 101 million
members, and by figures alone, this would make the company a leading streaming
service even though these members could use their memberships solely for the retail
benefits. Amazon Prime Video is also available in over 200 countries and offers both
original and non-branded video content at $12.99 a month (Consumer Intelligence
Research Partners, LLC, 2019).

Business/operating model:
Similar to its popular competitor Netflix, Disney’s new streaming service plans to offer
monthly subscriptions of $6.99 a month or $70 annually in the United States. This price,
at nearly half of Netflix’s monthly price, would make Disney+ the cheapest streaming
service next to Hulu. The streaming service plans to offer a $12.99 monthly subscription
bundle with both Disney-owned services, Hulu and ESPN Plus (The Walt Disney
Company, 2019).
In addition to the general payment plan and the bundle offer, Disney offered a limited-
time discount price of less than $4 a month for D23 members-- Disney’s official fan club.
This offer required members to commit to a three-year Disney+ subscription and sign up
before Sept. 2, 2019 (Johnson, 2019).
Unlike Netflix, Disney+ will not have different pricing tiers. The streaming service will
allow all subscribers to stream simultaneously on four screens and create seven
different profiles for added personalization at no extra cost. Disney+ will feature all
family-friendly Disney content and add adult-Disney content to Hulu for subscribers to
enjoy through the bundle offer.
The streaming service will launch on Nov. 12, 2019, in the United States, Canada and
the Netherlands. On Nov. 19, 2019, the service will be offered in Australia and New
Zealand as well (The Walt Disney Company, 2019). The company plans to expand to
Western Europe, Eastern Europe, Latin America, and the Asia Pacific in the future
(Sorrentino & Solsman, 2019).

Relevant financial information:

 ● Michael Nathanson, a media analyst, estimated that Disney+ could lose as much
as $1.8 billion annually through 2023 with programming as the main cost (Barnes
& Koblin, 2019).
● The Walt Disney Company recently closed its $71.3 billion acquisition of 21st
Century Fox assets. This gives the conglomerate mass amounts of new content
competing streaming services will be denied (Barnes & Koblin, 2019).
● At least nine new movies are currently being produced for Disney+ with budgets
ranging from $20 to $60 million (Barnes & Koblin, 2019).

Recent Communications Campaigns:

Disney+ used the D23 Expo to announce all the
new original content that will be featured on the
streaming service and to promote its 3-year
discount. The D23 website received so many
visitors wanting to sign up for the deal that the
website crashed (Clark, 2019).
Disney+ has been using its social media to
promote the content it will have. Content posted
by the company includes movie trailers, movie
and TV clips with captions relating to pop culture
and Disney’s take on popular memes.

Research Questions:
● Did the announcement of Disney+ start a
streaming service war? How can Disney+ leverage its original content in this so-
called war?
● How can Disney ensure that viewers will not become overwhelmed with the
content it's continuously producing?
● What are the company’s biggest expenditures pending the launch of Disney+?

Works Cited
Barnes, B., & Koblin, J. (2019, April 11). Disney Plus Streaming Service Is Unveiled to
Hollywood Fanfar. Retrieved from The New York Times:
 https://www.nytimes.com/2019/04/11/business/media/disney-plus-streaming.html
Clark, T. (2019, August 27). The website offering a deep discount on Disney Plus has
crashed, as people rush to get the deal for the upcoming Netflix competitor.
Retrieved from Business Insider:
https://www.businessinsider.com/d23-website-crashes-down-during-from-disne
y-plus-deal-2019-8
Consumer Intelligence Research Partners, LLC. (2019, January 17). Amazon Exceeds
100 Million US Prime Members. Retrieved from cirpllc:
https://files.constantcontact.com/150f9af2201/a37a79a7-0eff-4a38-b05a-ce3c4
59addc2.pdf
D23. (2019, September 18). Disney History. Retrieved from D23:
https://d23.com/disney-history/
Grand View Research. (2019, February 11). Video Streaming Market Size, Share &
Trends Analysis Report.San Francisco: Grand View Research. Retrieved from
Grand View Research: https://www.grandviewresearch.com/industry-
analysis/video-streaming-market
Johnson, Z. (2019, August 26). Everything You Need to Know to Be a Disney+ Expert.
Retrieved from D23: https://d23.com/everything-you-need-to-know-to-be-a-
disney-expert/
Netflix. (2019, September 18). About Netflix. Retrieved from Netflix:
https://media.netflix.com/en/about-netflix
Netflix. (2019, July 17). Q2 2019 Investor Letter. Retrieved from Netflix:
https://s22.q4cdn.com/959853165/files/doc_financials/quarterly_reports/2019/q
2/Q2-19-Shareholder-Letter-FINAL.pdf
Sorrentino, M., & Solsman, J. E. (2019, September 12). Disney Plus: Launch dates,
prices, movies and shows to expect. Retrieved from Cnet:
https://www.cnet.com/news/disney-plus-streaming-service-launch-release-date
s-prices-shows-movies-to-expect-free-test-netherlands/
The Walt Disney Company. (2019, September 18). About The Walt Disney Company.
Retrieved from The Walt Disney Company:
https://www.thewaltdisneycompany.com/about/
The Walt Disney Company. (2019, August 19). New Global Launch Dates Confirmed
for Disney+. Retrieved from The Walt Disney Company:
https://www.thewaltdisneycompany.com/new-global-launch-dates-confirmed-for
-disney/