Plan of Action

Notes on Porter exhibit:

Stakeholders – explain what you mean about government and influence on content? Do you have specific examples? Two stakeholders that you should note at Motion Pictures Association of America which rates movies. I sent you an article about how it rates films – R versus PG – and how that impacts a movie’s profitability. Also, Disney faced some controversy about the skin color of one of its princesses in the new Wreck it Ralph flick.

https://www.huffingtonpost.com/entry/wreck-it-ralph-tiana-white-wash_us_5b719a80e4b0bdd0620b4444

What stakeholder group impacted the film? How much of a threat is it – especially in this environment of divisive politics over immigration, minorities, terror against ethnic groups in our country, etc.

Also, what about movie critics? They are a major stakeholder, impacting the success of a film!

New Entrants – you say “high” threat, but entry barrier is high due to content and cost to procure/develop content. Some of your comments are not completely clear – Platforms; what are the innovations? Cross-Boundary disruption – who is moving into streaming? Why will existing streamers collapse? If so, this means entry will likely be deterred. I need more clarification here.

Buyers – critics are stakeholders.

Suppliers – explain what you mean that actors have more bargaining power due to Netflix. Explain.

In sum, a good start, but I need some further development to make this more compelling and comprehensible.

H) Conclusion

According to the Porter’s Five Forces analysis conducted the largest threats Disney Play will face are (1) Competitors, (2) New Entrants, and (3) External Stakeholders. There are several ways for Disney to mitigate these threats by capitalizing on 1) Being their own supplier for production, 2) Already having a loyal fan base, and 3) Penetrating International Streaming Markets. These threats and opportunities are discussed below.

Competitors:

Streaming providers (Netflix, Hulu, Amazon Prime, etc.) provide a massive threat to Disney Play because they established their streaming presence first in the industry, and they provide access to content that a consumer may not want to leave. Disney Play would likely be an additional service, before consumers leave their current service solely for Disney Play. This is a threat because the release of new material on other platforms will unbalance the viewership for Disney Play.

New Entrants:

There is a high barrier to entry in the streaming market but those who have the ability to enter likely will. These entrants are a threat to Disney because they offer alternative experiences and content that could lure people away. The streaming industry is saturated with competitors making competition very fierce. Streaming is beginning to be viewed as a commodity by the consumer due to small differentiation between providers. Comment by Edwin Stafford: Absolutely, but Netflix and others are pursuing exclusive content already.

Stakeholders:

External stakeholders hold significant influence over streaming content. Disney may run into barriers preventing them from reaching certain people, especially international audiences. Disney has dealt with controversy surrounding their content and employees in the past. Going forward they will have to consider how their content will be perceived. Comment by Edwin Stafford: I need specifics… who are threating Disney and the industry? This sounds too speculative. This section should talk about specific problems – not “what if” scenarios.

Opportunities:

Penetrating International Streaming Markets

In the world today, there are many countries in the Middle East as well as North Africa that do not have or have limited access to streaming services. This is largely due to the fact that “so little of its content is in Arabic.” ( http://www.arabnews.com/node/1344116/media ) By producing content specific for these regions in their native languages, Disney Play has the ability to penetrate the streaming market in those countries more than any other service. These countries also have a large and growing population of children giving Disney Play an extra advantage in these markets.

Buyer Bargaining Power:

Disney has established a loyal fan base, making the service attractive to a large population of entertainment seekers. Where other companies have had to build brand loyalty, Disney is likely to reach a competitive level faster and reach the late majority earlier in their streaming endeavors. Their fan base is loyal and will be more likely to have Disney Play as a complementary service to their existing platforms.

Key Objectives Going Forward

Original and Exclusive Content

The key differentiating factor between streaming services is the content that they provide. Streaming subscribers respond favorably to quality content. Disney has highly sought after content including Marvel, Star Wars, and Disney originals. This content is not available anywhere else so viewers must use Disney’s service to see them. Continuing to produce original and exclusive content will strengthen Disney Play’s brand and grow its subscriber base.

Bundles & Subscriptions

With Disney owning a massive amount of the entertainment industry in addition to having several partnerships, their streaming service has the opportunity to bundle with companies such as Apple, ABC Network, ESPN, Fox, Hulu, etc. Giving consumers a resource to “have it all” under the Disney umbrella.

Disney also can provide subscriptions for small children, teenagers, and adults with different pricing options and content access on each level. Providing these outlets raises switching costs for consumers, and has the potential to appeal toH larger markets whose interests in content may vary.

Good start here! Keep building on this and tie your proposals to the issues they “fix.” So explain, for example, how your exclusive content deals with specific issues noted in the Porter analysis.

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