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Business News/ News / World/  In streaming wars, Disney reaches beyond families
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In streaming wars, Disney reaches beyond families

Disney plans to rope in 60-90 mn users in five years, targeting adults who don’t have kids at home
  • Disney’s marketing force is reaching beyond its traditional family audience to send a message that its $7-a-month subscription service Disney+ offers something for all ages
  • A still from the Disney+ show ‘The Mandalorian' (Photo: AP)Premium
    A still from the Disney+ show ‘The Mandalorian' (Photo: AP)

    Los Angeles: During commercial breaks in a broadcast of World Wrestling Entertainment’s WWE SmackDown, fans were shown ads for Walt Disney Co.’s new streaming service, Disney+. So were Monday Night Football viewers and video gamers watching Twitch.

    “Try to keep up," said Captain Marvel in one ad after a series of fast-paced clips from Star Wars, The Simpsons, The Avengers and other Disney-owned hits from outside of its deep catalogue of children’s classics.

    New Star Wars series The Mandalorian was trending on social media, and Twitter users were proclaiming their excitement at finally being able to sign up and watch Disney+ after months of well-orchestrated anticipation from the Disney marketing machine.

    Disney’s marketing force is reaching beyond its traditional family audience to send a message that its $7-a-month subscription service Disney+ offers something for all ages. The service debuted on Tuesday in the US, Canada and The Netherlands.

    “It’s incumbent upon us to market it the right way to emphasize the fact that it’s not just for kids," Disney executive Kevin Mayer said during a briefing at the company’s Burbank, California, headquarters.

    “It’s all family friendly, but everyone can enjoy this product."

    Disney has told investors it can hook 60 million to 90 million customers within about five years as it competes for customers in a crowded streaming market dominated by Netflix Inc.

    Disney doesn’t have much of a choice, said David Yoffie, a professor at Harvard Business School.

    “Netflix has changed the nature of the game," Yoffie said. “If they didn’t participate, they would be left behind."

    Signing up adults who do not have children at home is part of that plan.

    Consumers may not realize that after a series of acquisitions Disney is much more than classics like Cinderella and Mary Poppins that charmed generations of families. The company now owns the celebrated Star Wars movie franchise; Iron Man, the Hulk and dozens of other Marvel superheroes; Toy Story animation house Pixar, and nature programming channel National Geographic.

    Previously released movies and TV series from all of those brands, plus 30 seasons of The Simpsons, are available on Disney+ alongside decades of Disney’s family-centric offerings.

    Disney+ also offers new programming from those brands.

    To raise awareness, the company is promoting Disney+ during sports and prime-time TV telecasts to get in front of what Hollywood calls the four quadrants of viewers: male, female, young and old.

    “We’re unmatched in quality and appeal across our four-quadrant audience spanning a variety of genres, formats and arenas, and will continue to build on that year after year," said Ricky Strauss, president of content and marketing for Disney+.

    In addition to the wrestling, football and gaming contests, ads ran during the World Series and the ABC News late-night programme Nightline, and on social media networks.

    Early testing in The Netherlands, where Disney offered a free two-month trial of Disney+, attracted a “very large and diverse audience," said Mayer, who runs Disney’s direct-to-consumer and international unit.

    Marvel’s Agents of SHIELD, a series aimed at 18- to 49-year olds, ranked as the most-watched piece of content, Mayer said. Next was teen-oriented show The Suite Life of Zack & Cody followed by Disney’s Mickey Mouse Clubhouse, a cartoon for young children.

    “Our hypothesis was we will have a lot of different types of viewership, that it’s not going to be centered among any one of our brands," Mayer said. “It’s quite a nice confirmation of what we want accomplished."

    The initial response in The Netherlands has cheered industry analysts.

    “They have some surprising and encouraging signs about this potential that Disney+ is not just kids and family," Forrester analyst Jim Nail said.

    Some users also reported trouble getting the app to work as soon as they tried to log on in the early hours of Tuesday morning, when the East Coast of the US and Canada was awakening. Problems reported on the @DisneyPlusHelp Twitter handle ranged from “service not available" to specific issues such as “The early seasons of The Simpsons are in the wrong aspect ratio."

    But unlike Netflix, Disney+ limits how far its programming will go to attract older viewers. To keep it family friendly, the service will not have any R-rated movies or TV shows designated TV-MA for mature audiences. Programming considered too adult for Disney+ may stream on Hulu, which Disney also owns.

    That will include FX series such as American Horror Story and Fargo and possibly movies starring Deadpool, a Marvel character known for foul-mouthed humour, when rights become available. “There are boundaries to what we’ll put on Disney+," Mayer said. “’Deadpool’ is definitely not for Disney+."reuters

    Bloomberg contributed to this story

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    This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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    Published: 12 Nov 2019, 10:14 PM IST
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