Disney+: Walt Disney’s Powerful Tool for Success
The Walt Disney Company has a wide-ranging portfolio, but its CFO believes that Disney+ is the real star of the show. Launched in late 2019, Disney+ has quickly become a key asset for the company.
During the UBS Global Media & Communications Conference, Hugh Johnston, the CFO, explained why Disney+ is so important. He highlighted how the streaming service has shifted Disney’s focus from business-to-business to direct-to-consumer. With connections to 175 million households and growing, Disney now has valuable insights into how consumers engage with entertainment.
Johnston also pointed out that Disney+ acts as a gateway to all things Disney, with offerings that include news, sports, and family-friendly content. By tapping into the shift from traditional TV to streaming, Disney is targeting cord-cutters and positioning itself as a go-to entertainment destination.
To drive subscriber growth and profitability, Disney is implementing strategies like password sharing and integrating ESPN content into Disney+. According to Johnston, each new subscriber brings significant margin to the business, similar to a software company model. The addition of popular sports content and interactive features aims to attract and retain subscribers, especially in households with diverse entertainment preferences.
Disney is leveraging its advertising expertise to generate revenue in the streaming space. By using in-house ad technology and targeting tools, Disney can reach specific audiences effectively.
In conclusion, Disney+ is not just a streaming service—it’s a strategic asset that is driving Disney’s success in the evolving entertainment landscape.
