Disney Is Doubling Down on Its Ambitious Digital Strategy
The Walt Disney Co. (NYSE:DIS) has always been a leader in the entertainment industry. It is now working comprehensively on a digital strategy that will help power the future of storytelling.
The media and entertainment giant has been investing in technology for many years, and its current focus is on creating new experiences that are interactive, immersive and customized. Disney is also using data to create more targeted content across its digital platforms. The company is committed to creating the best possible experience for its audiences, and its digital strategy will help it continue to be a leader in the entertainment industry.
CEO Bob Chapek has said he wants to use the latest trends in technology to ensure Disney offers services no one else can. For instance, ge wants to use data from theme park visits and consumers' streaming habits to deliver personalized entertainment experiences.
The most recent sign that Disney is looking to shake things up in the industry came when it appointed veteran media and tech executive Mike White, who has an accomplished track record, as head of the newly created Next Generation Storytelling unit. In this new position, White will be responsible for exploring all forms of future storytelling opportunities across multiple platforms.
In recent years, the focus on data gathering and augmented reality, as well as new forms of entertainment, has fed into Disney's existing product lines, most importantly Disney+. It has emerged as one of the world's strongest streaming companies, largely due to the company's commitment to innovation. By continuing to invest in new technology and ideas, Disney is ensuring that its product will remain at the forefront of the entertainment industry for years to come.
Disney lays out an aggressive plan for a digital future
The Covid-19 pandemic dealt a heavy blow to Disney, but the company responded by adapting its businesses to the new normal. In particular, its streaming service became a big hit with families as the pandemic forced everyone to spend more time indoors. Disney+ is now the biggest streaming service provider in the world, beating out Netflix Inc. (NASDAQ:NFLX) with 221.1 million streaming subscriptions worldwide across its streaming offerings as of the June 2022 quarter.
Many companies would be happy with this situation. However, this is Disney we are talking about. It is never going to be content with its performance.
From its early experiments in animation to its computer-generated imagery in blockbuster films, Disney has long been at the forefront of cutting-edge technology. The company is now working hard to incorporate augmented reality into its products. It has already developed mobile apps that allow users to see virtual characters and objects in their real-world surroundings. The Next Generation Storytelling unit is part of this strategy. The company also plans to bring augmented reality to its theme parks, allowing visitors to interact with Disney characters in new and innovative ways.
However, Disney+ is the biggest area these digital initiatives will impact. Even though the streaming network was incredibly popular and successful from its launch, it is still struggling to generate profits. But the sharp growth in total subscriber numbers has helped keep Disney's stock prices high despite the pandemic, inflation and supply chain issues.
In addition, Disney is increasing the prices of its streaming services. The subscription for ad-free Disney+ is jumping to $10.99 per month from $7.99 per month, while Hulu's ad-free streaming monthly fee will also increase to $14.99. The ad-supported version of Hulu will increase to $7.99 per month from $6.99 per month, while the ad-supported version of Disney+ will cost $7.99 a month when it launches on Dec. 8.
If the consumer base remains sticky, then Disney+ will easily become profitable. However, the key in the long run is keeping consumers on the platform. Netflix has run into this problem and is suffering from quarter-over-quarter subscriber declines for the first time in its history. Disney could avoid this situation by investing in storytelling elements and new technology. It is trying to do that now with interactive units and augmented reality. As a prime example, Disney+ released an augmented reality short film, "Remembering," starring Brie Larson. This could be a promising indicator of what is to come.
Takeaway
Disney has always been known for its ability to stay ahead of the curve. In recent years, the company has once again taken a leading role in the field of augmented reality as its streaming service allows users to experience Disney content in a whole new way.
By incorporating augmented reality into its content, Disney is able to provide an immersive and interactive experience that is unlike any other. In addition to being a leader in augmented reality, Disney+ is also one of the most successful streaming services in terms of revenue generation. With its large catalog of popular films and TV shows, it has quickly become one of the most popular streaming services available.
Disney+ will continue to grow as the company invests heavily in augmented reality-based storytelling and data analysis to create custom content. So far, the substantial growth in the number of subscriptoins for the streaming service indicates the growth story is going nowhere. As more people become interested in streaming services, Disney+ is well positioned to capture a large portion of the market. The company's investment in technology and content will allow it to create unique and engaging experiences that keep subscribers coming back for more. All of this will also translate into strong returns for its investors as well.
This article first appeared on GuruFocus.
