They may offer you reduced rates, or give you free shipping on some other service, or give you some kind of exclusive content, but in reality these are subsidizing tools in a turf war.
In fact, companies are subsidizing customers as much as they can. It’s simply because right now streaming services are fighting each other for customers. That won’t happen later, when the platforms have established their market share. Right now, the price of streaming is generally low, so if you want two or three platforms, what we have now is fantastic. In a way, this might be the best time for consumers. What happens once these platforms have more or less established their market share? Disney’s IP transcends time in a way few others can.īut the cost of each of these services adds up, even if the content is great and they’re “inexpensive” on their own. They can say “we own Han Solo, we own Iron Man.” None of their competitors can say that. They have that, and other related properties, and also Star Wars and Marvel. What it owns goes beyond Mary Poppins and Mickey Mouse. Other streaming platforms should be scared. The way for Disney to get the most value out of its intellectual property is to have its own channel – Disney+. So Disney’s launch of Disney+ is a truly great angle for those studying the streaming race and competitive strategy. It could no longer rely on third parties, like Netflix or Hulu, to distribute Disney content. What Disney discovered, prior to Disney+, is that having almost-complete access to its customers is dependent on the company having its own platform. How much does the content on a platform determine its potential market share? Given how much intellectual property Disney has, is it an automatic winner by default?ĭisney in general is very content rich, and all its content is definitely transferable into a big market share. Later on, if they’re one of the winners because they have a substantial chunk of the market share, these streaming services will be able to extract more from the consumer. Platforms right now are cultivating their market share by kind of subsidizing users. The only way to do that is to have a large market share, so we are currently in the stage of crazy expansion. For the platform to pay its production costs, it needs a lot of customers who are paying a subscription fee. Competition is all about gaining market share rapidly, and the success of each platform is about growing the market share. The idea is to understand why some companies are more successful in growing their market share. My point of view examines company strategy and competitive strategy. How are the streaming platforms positioning themselves to be a winner in this race? Consumers don’t yet know which service will be a winner, and they wouldn’t be subscribing to so many services if they did. The streaming platforms are offering unique content to attract customers and get them to become paying subscribers. For example, consumers will purchase multiple streaming services or continue paying for cable television while being subscribed to new streaming plans. Typically, consumers will do very cost inefficient things when there are this many options. Think about all the competitors: Hulu, Netflix, Amazon Prime, AppleTV, and now Disney+, and so on. The streaming market right now is in a race, and we don’t know who will win that race. What does the Walt Disney Company's entrance into the streaming fray with Disney+ mean for consumers, who have yet another option for streamable content? Mussachio also teaches the Brandeis courses “Competitive Strategy” and “Business and Economic Strategies in Emerging Markets.”īrandeisNOW spoke to Musacchio about how consumers and companies are responding to the rise in streaming platforms: Professor Aldo Musacchio of the Brandeis International Business School is an expert on company strategy and has been monitoring the recent developments in streaming, which he says will have an enormous impact on the future of cable television, internet access and entertainment.
#Well then its time to kick it up a notch tv#
12 launch of the online streaming service Disney+.īut there’s more to Disney+’s arrival than its content-rich digital library of shows and films.ĭisney+ also adds more congestion to an industry in which streaming platforms like Hulu, Netflix, Amazon Prime, Apple TV and others are fighting for territory by offering original, exclusive and quality entertainment at competitive prices.
Fans of “The Little Mermaid”, “Star Wars”, Marvel’s “Iron Man” and any of the countless other movies and television programs under the Walt Disney Company’s umbrella are likely excited about the Nov.
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