Right now Netflix is rethinking its business model to avoid further loss of subscribers, which in the first half of the year amounted to 1.2 million people who decided to cancel their subscription. Some of the options that the giant of the streaming is to launch cheaper but ad-supported subscriptions.
But Netflix is not the only platform facing a reconfiguration of its business model. HBO Max -which replaced HBO Go- is facing a merger of Warner Media and Discovery assets, which opens the possibility of a major change within the content portfolio and its costs.
“Other (streaming) options are coming out for which the consumer could be changing their preferences a bit. Leaving other distribution services to jump to platforms is something that we are definitely seeing as a trend”, acknowledges David Chávez, vice president of marketing for The Walt Disney Company Mexico.
Low prices and exclusive content to retain users
Although for Disney+ the reconfiguration faced by some of its competitors represents an opportunity to continue consolidating within the industry, the company recognizes that there are significant challenges to achieve it, such as retain and attract more audience.
The company launched its promotion of subscriptions of 29 pesos the first month, which is valid from September 8 to 19, as part of its Disney Day celebration. It will soon offer a ad-supported membership at a lower price that the current membership without ads, which costs 159 pesos per month or 1,599 pesos per year.
With both strategies “we seek to expand the offer we have at a commercial level so that we can also be more accessible to all types of segments,” says the Dinsey + manager.
The contents, says Chávez, are another of the key pieces for the positioning of the brand. The manager acknowledges that the accelerated growth that the platform had in Mexico after its arrival is largely due to the connection that the platform has achieved with users through its content. “Mexico is a market that loves Disney very much and at a regional level it is one of the most important markets for the business,” he says.
Now Disney+ wants to add value to the application through movie premieres that will not be released in theaters, such as Pinocchio, which will only be available in streaming. Another case was Pixar’s Turning Red tape, which was one of the most viewed on the platform.
“Cinema continues to be an important window, but we also seek to add value to platform subscribers with productions like Pinocchio,” he says. “The decision to release a film in theaters or on the platform is not about quality or budget, but about ensuring that we balance the content we have on offer,” he adds.
Star+, the other story
In August of last year, the other Disney platform arrived, Star +, which was described as the application that has “the Disney portfolio for adults”, in addition to sports such as the NFL and F1, among other leagues. However, Daniela Ferrari, director of Marketing DTC (Direct-to-consumer), acknowledged that it has been difficult to position the platform because it was starting with a brand that was not known, unlike Disney +.
“I think it has been difficult for the audience to see the content that Star + has because it is not as linear as Disney +, which has recognized franchises (such as Marvel, Star Wars),” says Ferrari.
Star + will seek to make its way to complement Disney + programming by taking advantage of the sports content offer it has.
According to the Global Entertainment & Media Outlook 2022–2026 Mexico study, the video on demand sector will generate revenues of 1,257 million dollars this year and that by 2026 they will reach 1,899 million dollars.