Professional Documents
Culture Documents
Introduction
Jamie Bornscheuer and Emily Holdaway, PR students researching Disney+, analyzed the
strengths, weakness, opportunities, threats, stakeholders and target audience of Disney+. The
research gave the Disney+ PR team insight on how to and who to reach while promoting
Disney+. Being aware of the aforementioned research will maximize the efficiency of any future
communication strategies for Disney+.
SWOT Analysis
This section highlights the strengths, weaknesses, opportunities and threats to Disney+
and Disney as a brand.
Strengths Weaknesses
• Highly recognized brand globally with a • Only reaching five countries in
large fan base 2019
• High follower engagement on Twitter and • Limited to just Disney content
Instagram • Lower follower count in
• Quick to resolve customer complaints and comparison to its competitors on
address issues social media
• Rarely interacts with its followers
on Twitter
Opportunities Threats
• Steady growth in social media following: • Must compete for share of voice
Nostalgic content and anticipation for new in media with already established
content is working brands
• Steady growth of media coverage leading • Decreased interest from older
to launch generations
• Original content can become a trending
topic separate from the streaming service
Weaknesses:
Disney+’s biggest weakness is growing pains. Because the streaming service is new,
there are limitations and obstacles that they face. One of these limitations is that
Disney+ will only reach certain countries in 2019. The streaming service launched 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). Disney+
recently announced that the streaming service will be available in the United Kingdom,
Germany, France, Italy and Spain on March 31, 2020, but this won’t reach Europe at
the original launch date (Disney, 2019). Another limitation is that the streaming service
can only provide Disney content, a topic that has come up in previous preliminary
research. Disney+ does offer a bundle with Hulu and ESPN+ that will combat this issue,
but it’s still an issue for customers that only purchase Disney+. One obstacle that
Disney+ faces is financial loss due to programming. 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).
Opportunities
Disney+ is constantly gaining media coverage. There were 428 articles by 202 different
outlets during the week of Nov. 7-13, 2019 that were published in the U.S. and had
Threats
Disney+ is entering an established industry, so it is going to have to catch up with
competitors to gain share of voice among traditional and social media. Netflix and
Amazon Prime Video have millions of followers on their social media, while Disney+ is
still in the hundreds of thousands. Netflix and Amazon Prime Video comment and
interact with viewers often, whereas Disney+ rarely interacts or comments at all. Netflix
and Amazon Prime Video also have a higher average share per Facebook post.
Disney+ is also not attractive to customers ages 50-59. In a survey the PR team
conducted, 45% of participants were ages 50-59, and a majority of survey takers said
that they will not purchase Disney+. This leaves an untapped target audience.
Stakeholder Analysis
Primary
Disney+ is a budding threat in the streaming service industry and continues to grow
rapidly after its launch on Tuesday, Nov. 12, 2019. Because of this growing popularity,
the company has a significant amount of people and organizations with a stake in the
company’s success. The primary stakeholders for Disney+ include its customers,
investors, employees, talent, board of directors and co-marketing partners.
The board of directors and company leadership directly affect the streaming service’s
overall perception and the direction Disney+ will take as it navigates a competitive
industry. Disney+ must communicate and pay ample attention to its investors and
shareholders, especially during such a volatile time for the company due to a launch
plagued with glitches. Events within the industry and decisions made by the company
will affect the worth of Disney’s stock. Had the rocky launch of Disney+ brought down
Disney’s stock, the investors and shareholders would have been directly affected. Direct
email and internal communications are the most effective ways of communicating with
these primary stakeholders.
Employees for Disney+ are directly affected by the company’s decisions. Their jobs are
influenced by decisions made about the direction of the company and how well the
company is perceived by the public. Employees include those managing the streaming
service, filmmakers, writers, actors, producers, talent acquirers and more. The
Additionally, Disney+ partnered with Verizon Wireless to offer a free year of Disney+ to
any Verizon customers who have the unlimited data plan. Because this makes Verizon
a co-marketing partner for Disney+, Verizon is now directly affected by the decisions
that Disney makes.
Finally, customers are the biggest influence for the company’s success. Without
popularity and a growing subscriber count, Disney+ would not be successful and its
investors and many of its employees would abandon the company. Social media would
be the best way for the company to communicate with this audience and keep up with
the online sentiment toward Disney+.
Secondary
Disney+ has many secondary stakeholders as well. Although these groups are not
directly affected by the company, they can greatly influence public sentiment toward
Disney+. Secondary stakeholders include government officials, the media and internet
service providers.
Government officials write and pass legislation that affects the digital media and
entertainment industries. These industries are pivotal to the success of Disney+, so the
company has to comply with state and federal laws such as privacy policies and tax
codes.
A mutually beneficial relationship between the media and Disney+ is also a large factor
in the company’s overall success. The media, traditional and digital, promote and inform
potential customers about the streaming service and garnering a strong, beneficial
relationship will sway the media sentiment in the company’s favor. Media can influence
public perception and, because of this, it is important for Disney+ to establish a
collaborative relationship with such a powerful secondary stakeholder. Media can be
reached through email and phone while newsletters, press releases and company
statements should address the media as a whole.
Internet service providers are an essential secondary stakeholder for Disney+ because
without them, there is no platform to be used by customers. A significant amount of
bandwidth is required for the massive amount of online traffic that Disney+ generates.
Fostering a relationship with internet service providers would ensure that the company
has a stable platform. Company statements and press releases could address these
providers to maintain the relationship.
Audience Analysis
Target Audience: Millennials, Early Generation Z
The target audience has most likely heard of Disney+ and its services because Disney
is a highly recognized brand. Some are college-age and most are on social media.
Focusing content on Disney Channel Originals and Disney movies is key to its social
media content. Early Gen. Z is also likely to be making independent purchases with little
annual income. According to a focus group conducted by the Disney+ PR team, this
target audience needs to see demand for the product to justify buying it for
themselves—a subscription purchase will not be made without great influence.
According to a study by Business Insider, the majority of Generation Z prefers
streaming services to cable TV, so it is likely that the people in this generation already
have a streaming service (Business Insider, 2019)
Generation Z habits:
• 45% of teens say they are online “almost constantly”
• Almost half of Gen Z-ers are online for more than 10 hours or more each day
• 95% of teens report that they have a smartphone or access to one
• 55% of Gen Z use their smartphone for five hours or more a day
• 85% of Gen Z use social media to learn about new products (Generation, 2019)
Millennials, born from 1981-1996, are another target audience for Disney+ because this
generation is likely to have young children who would be interested in the content that
Disney+ offers. This generation would likely be buying a Disney+ subscription for a
family, in contrast to those in the early Gen. Z category, who would likely be buying a
subscription for themselves.
Millennial habits:
• 51% of Millennials say they spend “nearly all” or “most of their online time on a
smartphone (D’Adamo, 2018)
• Facebook and Instagram are the most popular social networks for Millennials
(D'Adamo, 2018)
• 57% of Millennials watched more than 1 hour of TV in the last 24 hours (Youth
Ministry Media, 2019)
• 59% of Millennials use the internet as their main news source (Youth Ministry
Media, 2019)
Influencers to Target
Audience Personas
Persona One:
Name: Rebecca
Age: 20
Location: Phoenix, Arizona
Education: Currently earning an undergraduate
degree
Occupation: On-campus university job and internship
Income: $12,000 annually
Marital Status: In a relationship
Motivations:
Rebecca is a college student trying to balance work,
school, and social life. She is driven to finish her
degree and start her career. Rebecca is not sure what
she wants to do after graduation, but she is getting as
Figure 1: Audience Persona much experience as she can to figure it out. She grew
up watching Disney movies and loves Disney Channel
One
originals such as High School Musical and Hannah
Montana. She enjoys listening to pop and rap music.
Challenges:
Rebecca is paying for her living while in college and money is tight. She is careful where
she spends her money and does not like monthly subscriptions. She gets all of her
news from Twitter.
Decision Making:
Though she makes many impulse purchases, Rebecca thoroughly analyzes every
subscription she signs up for before purchasing them. She wants to make sure that her
purchases are of high quality.
Name: Jocelyn
Age: 37
Location: Phoenix, Arizona
Education: Bachelor’s degree
Occupation: Stay-at-home mom
Income: $100,000 annual family
income
Marital status: Married
Motivations:
Jocelyn is a stay-at-home mother to
three young boys. She loves being
able to volunteer at her kids’ school
functions, go to every soccer game
and spend time with her kids. Nothing Figure 2: Audience Persona Two
is more important than family to her.
She has been married to her husband for 10 years and he is a lawyer. His annual
income is around $110,000. The family lives comfortably, but it helps that both Jocelyn
and her husband are fiscally conservative. Money is spent with purpose in this
household and, more often than not, goes toward their children. Because each of
Jocelyn’s boys are under 13 years old, Disney is a big part of what her children watch.
She often turns on “Disney movie marathons” to distract her kids long enough for a free
moment to herself. She has both a Netflix and a Hulu account.
Challenges:
Jocelyn has a difficult time justifying “frivolous” purchases and already has two
streaming service subscriptions that the whole family enjoys.
Decision Making:
No financial decisions are made without the unanimous approval of both her and her
husband. Jocelyn always considers her children’s input and often feels like a sucker for
giving in and buying presents for her boys to make them happy.