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However, Netflix is not the only player to create a leading business model in the market; Disney+
and TV Now have done so, too. Disney+ with its relatively late market entry at the end of 2019
entered untapped market space, namely the kids and family segment. Since it has a large portfolio
of existing original movies in this segment, it did not even have to invest large sums of money to
gain market leadership. Furthermore, Disney+ has the advantage that it can offer its popular Disney
movies exclusively on its streaming platform, attracting more subscribers and pulling them away
from other streaming platforms that they subscribed to previously. Disney+ can also rely on
the prominent Walt Disney brand with its iconic characters, popular formats, and own branded
theme parks. The combination of these factors – i.e., entering a rather unexploited market segment
as well as having a large portfolio of original content and a strong brand – enables Disney+ to
conquer the streaming market despite its late entry.
One of our experts revealed that Disney is following a four-quadrantstrategy, which targets
adults without children, adults with children, teenagers, and young children by providing
specific content for these four groups.
Furthermore, its Disney brand, which is synonymous with family-friendly content, is supplemented
by the “+” to promote other brands and IP within Disney (e.g., Marvel, National Geographic, Star
Wars, Simpsons, etc.). Moreover, Disney has the financial means to extend and invest in its
portfolio by producing further original titles under its own popular brand. This can be a valuable
advantage with regard to the premise that content is the decisive factor for customers in their
choice of content provider. In addition, Disney can draw on its experience of building Hulu,
another streaming platform, which is also part of the large Disney network. Its adult content is
mainly provided on Hulu, which means there is a difference between the “family” channel and the
one with content for adults. Another insight provided by one of goetzpartners’ industry experts is
that Disney has set up a content grid that matches audience and content; identified
content gaps in the grid are filled through the acquisition of content.