Date: October 05, 2021

To: Everyone involved

From: Disney +

Subject: Projects and current situation

I’m writing to inform you that in the next few months, our streaming platform will be under

innovation and with new content.

Our company continues to grow, and for this it is necessary to provide new material for the

enjoyment of our public.

For this to happen, it is necessary to have all the necessary resources as well as the work of

all of us.

If you have doubts or questions about the new projects, you have access to the full report

here.

Thanks for your cooperation.

Executive summary

Walt Disney Direct-to-Consumer & International (DTCI) is a subsidiary of the Walt Disney

Company. DTCI is an entertainment company that provides subscription-based, over-the-top

(meaning media that bypasses traditional telecommunication platforms and is offered to

customers directly via the internet), video-on-demand, and sports streaming services to

American and international consumers. The services available to American subscribers

currently consist of ESPN+, Hulu, and Movies Anywhere. Disney+, DCTI’s recently

announced streaming service, is highly anticipated by consumers and will launch on 12

November 2019. Hotstar, an India-only streaming platform, is currently DTCI’s only streaming

service available in an international market. On March 14, The Walt Disney Company

reorganized its company into four segments :Walt Disney Studios, its film studio, Disney

Media Networks, which oversees its television networks and channels, Disney Parks,

Experiences and Products, which manages its theme parks and resorts. Disney’s fourth

segment, Walt Disney Direct-to-Consumer & International, was formed to oversee the digital

video subscription services it owns. Disney has the power to soon become the biggest

competitor in the industry with global expansion of their streaming services and investment

into exclusive and original content.

 Table of contents

Memorandum………………………………………………………………………………..1

Executive Summary………………………………………………………………………….2

Introduction………………………………………………………………………………….3

Findings and discussions…………………………………………………………………….3

Conclusion…………………………………………………………………………………..6

References…………………………………………………………………………………..7
Introduction

The Walt Disney Company is one of the most influential corporations of the century.
The company has been successful with all its business models such as animated and live action
films, television shows, theme parks around the world, cruise lines, and theme merchandise, in
addition to the acquisitions of successful entertainment companies such as Marvel, Lucasfilm,
ABC, ESPN and 21st Century Fox. Disney is unmatched in today's business environment. The
company participates in the childhood of many consumers with its
popular library of animated movies, such as Snow White and the Seven Dwarfs, Cinderella,
Toy Story and Finding Nemo.
The Walt Disney Company announced its introduction to the Streaming Market with a new
platform, Disney +, in Fall 2019. Several internal and external factors have to be considered
for the ultimate success of the platform and are important to consider when making an
important business decision.
Disney knew how to take advantage of its the strengths and opportunities for which it has
positioned itself as one of the most influential streaming platforms in the last year. This report
will try to explain the projects subject to this success as well as their development.

Findings and discussions

Globalization, the expansion of digital media and the new era we are going through has made
streaming a highly valued business model and with them the different content and ratings have
been diversified.

That is why companies have made the decision to promote, collaborate and promote their own
platforms to reduce costs and carry out new attractive projects. During the first quarter of 2021,
the leading streaming platforms fell short of their estimates in terms of subscribers.

Not reaching an estimate is part of the fact that new players are coming out, the competition is
getting stronger at capital scale levels. It is a competition of the strongest. The pandemic
accelerated what was expected for 2025, since there are too many original productions and the
premieres are present in the main companies.
By 2022, with respect to the current scenario, several of these platforms will be present in
similar numbers of countries as Netflix. This will become a segmented market where they may
have 20% each; Netflix, Disney + and HBO.

As you can see, there are platforms that compete with similar philosophies, but there are others
that are trying to stand out by betting on higher quality standards or a radically different type
of content.

The competition of Disney + are so many platforms of streaming video like Netflix, Amazon
prime, HBO, Apple tv, and even Youtube, this last platform because they have movies for rent
or buy. But their direct competition is Netflix, currently it is the biggest platform for their
number of the subscriptions putting amazon prime in third place and according to statistics
Disney+ could reign in 2024 being the number one.
The platform had exceeded 100 million subscribers at the beginning of March, but in this
economic report it has indicated that, at the end of the quarter (April 3), the total number of
subscribers had risen to 103.6 million. A growth of almost 9 million compared to the previous
quarter that makes it grow faster than Netflix.

Disney also includes a new economic plan that will be only available for cellphones and the
price would be 6.7 dollars. But one of the first companies to present low-cost subscription plans
in the Asia-Pacific region was Netflix, which allowed for only three dollars to access content
at 480p resolution on a smartphone or tablet, which only added in the last quarter more than a
million new users.
The keys to the success of Disney + are many. Undoubtedly, the launch of the service in Latin
America was a very important boost, added to the growing catalog of series and films. Popular
titles such as The Mandalorian, WandaVision and Falcon and the Winter Soldier have driven
increased subscriptions and the presence of all productions of the Marvel Cinematic Universe
and Star Wars, plus future releases related to these franchises, are key weapons for Disney.
And to this we must add the other original productions and the classics of the house of Mickey
Mouse.

According to financial results the platforms are going to have of a slowdown, After the Netflix
income report, they lost 433 thousand subscribers only in the United States and Canada in the
second quarter of the year, and according to The Information, Disney + internal reports indicate
a similar behavior, before which, Conversations were intensified to expand the programming
and thus be able to reach a greater number of user and this could be with the low cost plans that
were mentioned above. So it is important to keep in mind the uncertainty of the pandemic and
how large companies will handle their companies to make them grow. While the pandemic
was helpful for Disney+ in the sense that they managed to surpass their subscriber goals,
impressively landing 100 million subscribers during peak lockdown times. The projections for
Disney+ are 230 million to 260 million paid subscribers by the end of fiscal 2024. Disney+
unveils plans for future content, may hike subscription fee for users. They are going from
strength to strength, the staff will also be paying attention to what consumers want when it
comes to how they stream content. There are plans to give people a choice between watching
new movies in theaters or at home.
Conclusion
As we know that The Walt Disney Company is very large and its main objective is always to
grow more than its competitors, when it sees a threat if it can, and the company is declining the
purchase and creates a new opportunity to create better content.
Thanks to the pandemic, their number of subscribers rose more than they had thought for 2025
since most people are no longer going to the movies, which gives more power to this type of
transmission platform.

Although not everything is good for Disney since it has had some problems with its actors;
Since they have been affected by this, what could be raised in a cinema to the number of
subscribers in a premiere does not yet resemble what their actors ask Disney for an increase in
their salaries since they demand a percentage for the number subscribers your movie raises.

With all this, Disney + is still considered the second streaming platform with the most
subscribers since it has a great variety in its content for both adults and children, for this the
statistics consider that Disney + in 2024 will be number one in the world. market displacing
Netflix.
References

Groome, I. (2021, August 9). Disney CEO reveals his plans for the future of Disney +.
Streaming Wars.

Jain, P. (2020, December 13). Disney Plus unveils plans for future content, may hike
subscription fee for users. India Today.
https://www.indiatoday.in/technology/news/story/disney-plus-unveils-plans-for-future-
content-may-hike-subscription-fee-for-users-1749002-2020-12-12

Blumenthal, E. (2021, August 23). Netflix vs. HBO Max vs. Disney Plus vs. Paramount Plus
vs. Peacock vs. Discovery Plus. CNET. https://www.cnet.com/tech/services-and-
software/netflix-vs-hbo-max-vs-disney-plus-vs-paramount-plus-vs-peacock-vs-discovery-
plus/

Wang, C. (2018, March 20). More than half of US homes now subscribe to a streaming
service, spending $ 2.1 billion a month. CNBC.
https://www.cnbc.com/2018/03/19/streaming-services-americans-spend-2-point-1-billion-a-
month-in-55-percent-homes.html

Arleth Cano, Miranda Gamboa,

Leonardo Toledo, Johan Sarabia,
Alejandra Veytia