Learn the Mouse House Tactics!
I remember when you only had three choices for streaming. Netflix, Amazon, and Hulu. Streaming to your TV was also an enthusiasts entertainment. The majority still used their TV for linear programing or DVD/BlueRay. Sure, the internet of your computer was now mobile. But, it had not translated into many connecting their TV.
That has all changed, of course. The cord-cutting revolution is in full swing, and in the past two years, multiple streaming services have hit the screen. The market is feeling a little crowded while your pocketbook probably seems a tad roomy. As a matter of fact, many are spending close to $50 a month on these services. Compare that to the $10 or so dollars we spent on our service of choice just a few years ago.
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It was not like we want to spend more on streaming.
Many of us made the switch precisely because of cable’s outrageous costs. So we balance the offerings as they come. What I want to look at is how new channels entering the crowd are finding success.
Disney’s ability to sway new users has been impressive, especially since being one of the most recent services to launch. Hulu in and of itself, is a great service, don’t get me wrong. They have stood the test of time, 13 years to be exact. Yet they only accumulated a rough 25 million subscribers in that period. Then Disney took over and that feeble number doubled. In just 5 months!
As an aside, streaming is still a young technology. A bit over a decade, but its adoption is taking hold. The point is, we have not come close to market saturation, so when I talk about market share, keep this in mind.
Did Disney know something Hulu didn’t? Obviously. So let’s dig a little deeper.
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I realize that Disney has a huge advertising budget. And they have a name known all around the world. This does not guarantee success though. Just look at Quibi. It shut down just six months after launching. And not because they didn’t have the budget. Quibi had raised about $1.75 billion, far more than one would actually need to succeed. There were many high-profile investors with names of their own too, including Disney. Their intention was to revolutionize how people consume entertainment. Instead, they faded into obscurity.
So why has Disney plus been so successful?
Niche content. Many had believed that their focus on G & PG-rated films would alienate the adults in the audience. It turns out that focusing on family entertainment was exactly the selling point they needed. A general content provider would be a tough sell as Netflix already does general content better than anyone.
It is also easier for Disney+ to be the default option with a house full of children. And as someone who has had to shelter in place with his family, you won’t need to be concerned about what could be seen by curious eyes.
Turns out, though, being a bit different from the other streaming services was an advantage. Disney+ knew the important niche content. Every general entertainment service that isn’t Netflix is always going to be the second fiddle. But by limiting itself to Disney-branded programming, Disney+ now owns the Family category. That has proven to be a powerful offer to consumers around the globe. In large part, due to the pandemic.
The global video streaming market is expected to reach $102.0971 billion in value by 2023.
That is double the estimated value of streaming last year. Innovations, such as blockchain tech and artificial intelligence are improving this market even further. AI is playing an essential role in all aspects of video production and upload. Various video streaming solution providers use AI to improve the content quality of videos.
While TheWrap shows Netflix holding 20% of the U.S. streaming market, its lead is shrinking. Falling from 29% — a drop of nearly one-third– as more services enter the market. Compare that to Disney+ who has gone from 0 to over 11% in the same year.
We can confidently say that Disney+’s late entry was offset by their ability to differentiate themselves from the rest of the market. Niche content has set them apart, and the numbers are there to back up their success.
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Now take a look at who your competition is. Can you see what sets you apart? What are you offering that’s better or more unique than what is already out there? Figure that out and your success will increase a thousandfold!Garrett Cunningham