Disney enters online streaming war

Nov 13, 2020 02:38:53 PM
Tag :   online   enters   Disney   streaming

 Disney enters online streaming war

File photo: VCG



During commercial breaks in the 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 its deep catalogue of children's classics.

Disney's marketing force is reaching beyond its traditional family audience to send the 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 users within about five years as it competes for customers in a crowded streaming market dominated by Netflix Inc.

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 primetime 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 program 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 tween-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 [for] kids and family," Forrester analyst Jim Nail said.

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 humor, when rights become available.

"There are boundaries to what we'll put on Disney+," Mayer said. "Deadpool is definitely not for Disney+."

Glitch

However, Disney's long-awaited debut in the streaming media war on Tuesday was hit with technical glitches that the company said were caused by higher-than-expected demand as it takes on rival Netflix Inc.

It was unclear how many people successfully signed up and how many had difficulty accessing Disney+, which features roughly 500 movies and 7,500 TV episodes from the company's deep family-entertainment catalog as well as new programming.

"The consumer demand for Disney+ has exceeded our highest expectations," the company said in a statement.

Reuters
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