Ever Wondered Why Many Love Disney?

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Imagine launching a new service in one of the most competitive markets, with established giants leading the game already 😥 Now, imagine surviving this competition and dominating the industry within just a few years. Amazing, right? And that was the case with Disney.

It grew to 129.8 million subscribers and challenged the giant players 😯 I still remember going to Disney+ in hopes of watching something unique for a quick refresh, though I had Netflix and others on my phone.

How did Disney manage to win millions of hearts so quickly? What strategies did it use?

Let’s see!

Disney+, launched in November 2019, brings iconic content from Disney, Pixar, Marvel, Star Wars, and National Geographic under one platform. The streaming service became so popular that it reached 129.8 million subscribers globally by the end of 2022.

But how did Disney+ achieve this success in an already crowded streaming market?

Understanding the Customer

Disney+ focused on specific customer groups to meet their unique needs and expectations. They targeted each group carefully based on their interests and viewing habits:

• Families with Children

Families were a core audience for Disney+. Parents trusted Disney for its family-friendly content and safe viewing experience. Classics like The Lion King and Frozen addressed younger children, while animated series like Phineas and Ferb attracted older kids.

Reports say 41% of Disney+ users were households with children. This group valued easy access to a vast library of familiar, kid-friendly titles.

• Fans of Marvel and Star Wars

Disney+ was born to attract die-hard Marvel and Star Wars fans. These audiences looked for exclusive, original content, and the release of The Mandalorian, WandaVision, and other spin-offs helped pull in these fans.

By the end of 2022, 44% of Disney+ users streamed Star Wars content, showing the importance of addressing fanbases loyal to specific franchises.

• Young Adults and Millennials

Millennials were another Disney's target group, especially those nostalgic for Disney's animated classics. Many grew up watching Disney movies and now look for nostalgic content and modern originals.

Disney+ capitalized on this group’s viewing habits with animated classics and new series like The World According to Jeff Goldblum. By 2021, 33% of Disney+ viewers were between 18 and 34.

• Global Audience

Disney’s launch strategy targeted not only the US but also international markets. It expanded to 59 countries within its first two years.

It included massive markets like India, where Disney+ Hotstar gained traction due to its blend of local and Disney content. Can you believe Indians love Disney+ more than its competitor, Netflix?

Brand Strategy

Disney+ built its brand strategy around three key elements: exclusive content, leveraging its strong brand reputation, and competitive pricing.

Exclusive Content

Disney+ releases exclusive shows and movies we cannot find on other streaming platforms. The Mandalorian, the first live-action Star Wars series, was a super hit. By 2021, it was the most-watched streaming show in the US, with 14.5 billion minutes viewed.

Here’s the official trailer of The Mandalorian on YouTube:

Shows like WandaVision and Loki also did a favor in driving engagement from Marvel fans. This exclusive content strategy attracted fans of giant franchises and ensured they subscribed to Disney+ to access their favorite shows.

Leveraging Disney’s IP

Disney leveraged its decades-old intellectual property (IP) to attract subscribers. By having access to Disney, Pixar, Marvel, and Star Wars content, Disney+ instantly became the go-to choice for family enjoyment.

Disney’s classic films with newer blockbusters, like Frozen II and Toy Story 4, drove consistent engagement. It targeted multiple generations with its entire catalog by building on the brand’s global reputation.

Competitive Pricing

Disney+ launched at a highly competitive price of $6.99 per month, much lower than Netflix, which charged $13.99 for its standard plan. This pricing strategy aimed to make Disney+ an affordable option for families, casual viewers, and fans of Disney’s franchises.

In 2022, Disney introduced an ad-supported plan for $7.99 per month to make the service even more accessible to a large audience. So, here’s a screenshot of the price:

Marketing Strategies of Disney+

Disney+ executed several marketing strategies to reach a broad audience and drive rapid subscriber growth. These strategies focused on building anticipation, leveraging partnerships, and expanding the brand presence globally.

1. Pre-launch Buzz

Disney created notable excitement before the launch of Disney+ with a vast marketing campaign. They spent $135+ million on advertising, which included TV commercials, social media campaigns, and digital ads.

Trailers for The Mandalorian, Lady and the Tramp, and other exclusive content were released months before launch to create interest in people. The buzz brought in 10 million subscribers signing up on the first day.

2. Partnerships with Major Brands

Disney+ partnered with brands to broaden its reach, and the most notable one was Verizon. The partnership strategy was to attract Verizon buyers with a free one-year Disney+ subscription.

Here’s a commercial on the collaboration:

This partnership alone brought in notable new subscribers. Disney later collaborated with Apple, Amazon, and Google to make Disney+ available on their devices to ensure users could easily access the service.

3. Bundling with Hulu and ESPN+

To attract a larger audience, Disney offered a bundle combining Disney+ with Hulu and ESPN+ at a monthly fee of $12.99. This bundle allowed users to access family-friendly content, live sports, and general entertainment all in one place.

Doing this made the platform even more attractive to households with varied interests. This bundling strategy helped Disney+ grow its user base beyond just Disney fans, increasing subscriptions by 22% in the first three months after launch.

4. Global Expansion

Disney+ expanded aggressively into international markets. Within two years, it was available in 59 countries, including major markets like India, the UK, and Canada.

In India, Disney+ launched through Hotstar, rebranded as Disney+ Hotstar, and quickly became the leading streaming service with over 50 million subscribers by the end of 2021. Here’s a video of Disney’s entry in India:

Localized content offerings and pricing helped this global expansion to make it more attractive to different regional audiences.

5. Social Media and Influencer Marketing

Disney+ utilized social media platforms like Instagram, Twitter, and YouTube more to build excitement and engage its audience. They released teasers, behind-the-scenes content, and interviews with cast members to maintain interest in people.

Check out this behind-the-scenes reel:

marvelstudios

View more on Instagram

Then, influencers promoted new releases to reach specific audiences like Marvel and Star Wars fans. These efforts kept Disney+ in the public eye and fueled discussions online for higher engagement and retention rates.

Here’s another reel Disney+ Hotstar did in collaboration with influencers in India:

gameonbynewj

View more on Instagram

These well-executed strategies helped Disney+ to grow rapidly, making it one of the leading streaming services globally.

Results

• Disney+ reached 129.8 million subscribers globally by the end of 2022, exceeding its initial projections. In the US alone, it had over 46 million subscribers.

• Disney+ generated $19.2 billion in revenue by 2022, a portion of Disney's overall direct-to-consumer earnings, while the majority of this revenue came from subscription fees.

• The Mandalorian became the most-watched streaming show in 2021, with 14.5 billion minutes viewed. Merchandise from the series, including the iconic Baby Yoda (Grogu), made considerable revenue. While the exact figure is difficult to pinpoint, it's likely that the sales far exceeded the initial estimate of $2.3 million.

Conclusion

Disney+ rapidly grew through exclusive content, strong brand loyalty, and affordable pricing. It grew to 129.8 million subscribers in just a few years by understanding its audience and working on effective strategies. Its global expansion, partnerships, and content strategy made Disney+ a leading streaming platform.

It's your turn now (we will feature the best answer in the following post):

1. How can small brands use exclusivity when they do not own IPs like Disney?

2. What strategies can brands use to turn loyal followers into paid customers in a crowded market?