In the video streaming war, we’ve come to believe that the amount of content is fundamental to a service’s success, retaining its users, or attracting new ones. However, as time went on and new competitors emerged, it became increasingly clear that the audience is not looking for quantity, but quality. This reality caused a change in direction in Disney+.
The Mickey Mouse video streaming platform has experienced terrible growth during the pandemic. They certainly took advantage of the fact that millions of people were locked up at home looking for entertainment as a distraction. At this point, any escape from the complex reality is welcome. But the health crisis is being overcome and consumer habits are changing again. Getting them to open your wallet is no longer easy.
According to the company’s latest financial report, Disney+ is losing subscribers again for the second quarter in a row. One of the solutions they intend to implement is to be more selective about the content available. In other words, a smarter investment. So those led by Bob Iger declared that They will start filming certain productions. At the moment, yes, they did not say which ones.
“We are in the process of reviewing the content of our services to align with strategic changes and in our approach to content curation,” said Christine McCarthy (via Deadline), CFO of The Walt Disney, adding, “As a result, we will be removing certain content from our streaming platforms.”
New Disney+ strategy
What do you mean by “strategic change”? Disney+ is considering two big things that will change the platform’s near future. First, there is the issue of costs. Due to current times of economic uncertainty, you need to reorganize your investments. It is no longer profitable to risk that kind of money for productions that are not 100% guaranteed to succeed.
This, in turn, affects the second point. From now on, they will conduct a deeper analysis of the series, films and documentaries that will receive the green light. In fact, they warn that content production will decrease: “We intend to produce less content in line with this strategic shift.”
We will see not only farewell to various productions, but also the final cancellation of others. Are you familiar with this? Yes, it was the same path they took on Netflix and HBO Max (Max coming soon).
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Undoubtedly, interesting times are coming to Disney+. Not only to see how their updated original content production strategy will work, but also for the immediate response of subscribers. How will they react when they find out that the catalog will lose some series and films? What part of your audience is willing to sacrifice quantity for quality?
To some extent, this is a step that you can anticipate. At the end of April they reported dismissal of 7,000 employees, which is equivalent to 3% of its workforce. The goal, you guessed it, is to cut costs. In particular, $5.5 billion. However, it was logical that this could not be the only way out of the situation. This will now affect the Disney+ library, for better (more quality) or worse (less quantity)….
Source: Hiper Textual
