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US, Canuck pay TV subs to plummet
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The family-friendly Hollywood giant bets that more adult programming will help boost subscribers at the risk of brand confusion.
When Disney launched streamer Disney+ in November 2019, it leaned on the global recognition of Luke Skywalker, Iron Man, Moana and Buzz Lightyear to great effect. The service attracted 95 million subscribers in a little more than a year. Soon, Disney will find out what happens when characters like Olivia Pope, Betty Suarez and Jack Bauer crash its streaming party.
On Feb. 23, Disney began adding programming that skews more adult to Disney+ in such markets as Europe, Canada, Australia and New Zealand under the new streaming brand Star. The entertainment giant’s plan to feature Star as a content hub within Disney+ alongside Lucasfilm, Marvel, Pixar and National Geographic is designed to help fuel sign-ups overseas, but it also stands to create confusion for the family-friendly Disney+ brand.
WKBT
February 22, 2021 8:19 AM newsfeedback@fool.com (James Brumley)
Posted:
Updated:
There’s little doubt
Walt Disney‘s (NYSE: DIS) new streaming-first strategy makes strategic sense. Although we may not yet know exactly how much the entertainment world has changed due to the pandemic, we can safely say consumers now fully embrace on-demand video as a key component of their entertainment mix.
Being in the right place at the right time with the right product, however, doesn’t necessarily make a company’s stock a buy. The potential reward still has to make sense given the prospective risk for investors to take on a new position in a stock.
(Feb 22): The launch of the Disney+ streaming service in Europe last March didn’t get off to the most auspicious start. The company had to cancel a live event in London featuring some of its stars as the coronavirus marched across the globe.
But with people on lockdown from Aberdeen to Zurich, consumers soon found themselves watching even more movies and TV shows. Now, nearly a year after the product’s European debut, Walt Disney Co. is introducing a new brand, Star, which will feature more viewing options for adults and a higher price for everyone using the Disney+ service.
The Next Wave: Namaste Africa , five years later
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