Disney: Delivering More Content in More Ways
(6 pages of text)
Case (Pub Mat)
In mid-2017, faced with declining viewership and the loss of the associated advertising and affiliate fees from the pay-TV bundle, The Walt Disney Company needed to consider alternative ways to reach and engage viewers. One option was to move away from bundles and go direct to the consumer. Another option was to acquire more content and make it accessible across multiple platforms. But would these strategies be enough to stem subscriber losses? How did the push by technology disruptors into original content influence these decisions? Were there other strategies worth considering in light of changing tastes, technology, and competition?
This case is intended for undergraduate-level strategic management courses and economics elective courses on industrial organization, managerial economics, and industry case studies. After working through the case and assignment questions, students will be able to,
- evaluate the advantages and disadvantages that come with market size, incumbency (being a first mover), vertical integration, economies of scope, and brand reputation;
- use Porter's Five Forces framework to identify the sources of profitability threats for markets being disrupted by changing tastes, technology, and new competitors;
- evaluate the opportunities and risks of potential strategies to maintain or grow scale and customer engagement; and
- articulate, from the vantage point of the consumer, the [dis]utility of having more choices (product differentiation).
Information, Media & Telecommunications
United States, Large, 2017
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