Sunday, December 29, 2019

Zero to 10M in 1 day - Lessons from Disney+ Success


If you were one of the 10MM-15MM subscribers of Disney+, you are proof enough of the great Disney marketing machine's execution chops, and could tell Disney+ is an almost-instant success.

There are many lessons to learn from -
  • Power of deep, no-nonsense content/catalog: You gotta have substance, and high quality content. Disney put their entire catalog of movies, shows and original content "on the line". Content over style always wins.
  • Getting the Ps just right: They didn't rely just on the sanctity of the Disney brand, they literally put the money where the mouth is & got the pricing right - with the biggest draw being the ARPU at $7/mo or $6/mo for the annual plan. Users & customers matter more when you are scaling out.
  • Leveraging mega brands: that resonate with Disney+ (Disney+Pixar+Marvel+Star Wars+National Geographic, get it? The "+" here makes all the sense compared to Apple TV+)
  • Right ratio of "brains to ballsy": They bet the entire house (of mouse) on the SVOD service cannibalizing home videos, and licensing fees. Take the big risk and invest in the future, go all-in shows the commitment to the future vs. holding onto the past.
  • Nailing the synergy: From SVOD content, to theme parks to movie characters/content to cruise ships to merchandising, it's just a dizzying array of virtuous revenue loop.
    The sum of the parts is always greater than the whole, if the parts are parlayed smartly creating a flywheel.
It's probably too soon to declare victory while NFLX barrels at high pace, but curious if there are other lessons.

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