The Walt Disney Company is working on a model whereby subscribers receive streaming, products and services in return for a monthly fee. This model could also boost the advertising business in the long term.
More revenue from subscriptions is the major goal of many companies in the digital space. The Walt Disney Company has already laid a successful foundation in this context with its own Disney+ streaming service. Now the group wants according to information from the Wall Street Journal are even developing a membership program that gives subscribers access to streaming content, discounted merchandise, and special offers for the Disney Parks. This program is called “Disney Prime” internally, based on Amazon Prime.
After Walmart Plus comes “Disney Prime”: Membership program as planned at Amazon
With Amazon Prime, the e-commerce group Amazon has created an enormously successful program for members. Subscribers pay a fixed monthly or yearly sum – which has recently been significantly increased – and in return receive streaming content, free shipping, special product offers and advantages on campaign days such as Amazon Prime Day. Walmart, which is extremely popular in the USA, also has a comparable program, Walmart Plus. However, this does not offer any media content – at least not yet. Because Walmart is also considering integrating its own streaming service for this program. The company could even work with Disney.
Disney+, the Walt Disney Company’s streaming service, is already generating significant revenue. In addition, the service will be significantly more expensive from December 8, 2022 (but only in the USA for the time being). The price of the ad-free plan will increase from $7.99 to $10.99. As an alternative, Disney+ offers a subscription model with advertising for $7.99. But the loyalty of users via the streaming service, which also includes series hits such as Obi-Wan Kenobi and blockbusters like Prey may contribute, as well as the cooperation with advertising partners: inside is not enough for the group. A membership program is intended to provide a more holistic user experience and ultimately more sustainable sales.
Any merch coming to Disney+ soon?
Jessica Toonkel and Sarah Krouse told The Wall Street Journal that planning for such a program is in the early stages. CEO Bob Chapek supports the project, which aims to digitally centralize access to various Disney offers for users. Kristina SchakeDisney’s senior executive vice president and chief communications officer, said in the statement:
Technology is giving us new ways to customize and personalize the consumer experience so that we are delivering entertainment, experiences and products that are most relevant to each of our guests. A membership program is just one of the exciting ideas that is being explored.
Disney already has one D23 Official Fan Club to offer, which costs between US$99.99 and US$129.99 per year. But even this option does not offer a comprehensive experience including streaming, merchandising, etc. The merging of streaming services and shopping options is seen as a first step on the way to such an experience. Disney would like to offer merchandising products, such as shirts for Star Wars series or Marvel films, directly on Disney+; almost immediately in the context of the appropriate content. A QR code scan could link directly to the Disney Shop based on this content.
The overall goal, however, is to synchronize the offers and possibilities for subscribers so much that they can access all features and options with a single login and after paying a fee – in one place. The demand for Disney products and content is high: The Walt Disney Company was able to the most recent quarterly sales by 26 percent to more than 21 billion US dollars. Distributed across all streaming offers, Disney now has 221 million paying subscribers worldwide. Amusement parks and merchandising offers are also in demand. Disney Parks, Experiences and Products revenue grew 70 percent year-over-year last quarter. Bob Chapek explained:
We continue to transform entertainment as we near our second century, with compelling new storytelling across our many platforms and unique immersive physical experiences that exceed guest expectations, all of which are reflected in our strong operating results this quarter.
With the focus on a membership program like “Disney Prime”, Disney could combine the sometimes highly segmented business areas and generate even more subscription income. If the users are still willing to use the streaming service after the price increase at Disney+. For the advertising business it’s already building through this service, the data Disney would gain with a comprehensive subscription model could also be golden in the long run.
Source: OnlineMarketing.de by onlinemarketing.de.
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