Disney Enters Streaming Space: Can it Disrupt the Disruptor?
| Case Code: BSTR564 Case Length: 16 Pages Period: 2017-2018 Pub Date: 2019 Teaching Note: Available |
Price: Rs.400 Organization: The Walt Disney Company Industry: Media & Entertainment company Countries: America Themes: Digital Business Strategy, New Market Disruption, Strategic Alliances, Competitive Strategy, Mergers & Acquisition, |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
In August 2017, Robert A. Iger (Iger), Chairman and CEO of The Walt Disney Company (Disney), the world’s largest entertainment company, announced that Disney would end its movie distribution agreement with Netflix and launch its own direct-to-consumer (DTC) streaming services. The first streaming service, focused on sports (ESPN+), was launched in April 2018 and the second, a Disney-branded film and TV streaming offering, was slated to debut in 2019. According to analysts, the move was an attempt by the company to address investor concern over cord-cutting in the traditional media business and to outrun disruption by adapting to the changing media and entertainment landscape. As consumers continued to cut the cord, the use of streaming services had exploded, leading to big subscriber losses for cable providers. By the end of 2017, a total of 24.9 million viewers had cut the cord on cable, satellite, or telco TV services in the US — up 43.6% year over year..
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