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State of the Screens

Nine Reasons Why Disney+ Will Succeed (And Why Four Criticisms are Overhyped)

By April 3, 2019No Comments
Worth the time: Matthew Ball and the REDEF team break down nine reasons why Disney+ will succeed.

Studio with the top grossing movie:
2015 — Disney
2) 2016— Disney
3) 2017— Disney
4) 2018— Disney
5) 2019— Probably Disney (Avengers: Endgame)

Interesting stat: Consumers are already spending $2.6B — $3.0B per year on Disney home video. With a digital service delivered direct to consumer, Disney would keep ≈ 70–85% which is more than they take home now after paying the costs (Best Buy, etc.) of getting DVDs into their customer’s hands.

Quick math #1 on the potential opportunity for Disney+ from home video market:
1) Home video revenue/year — $2.6B — $3.0B
2) Home video revenue/month — $217M — $250M
3) Monthly subscription cost — $6
Potential customers from home video market — 36M — 42M

Quick math #2 on the potential opportunity for Disney+ from parents:
1) U.S. households w/ children — 36M
2) Monthly subscription cost — $6
Revenue/month from parents — $216M
4) Revenue/year from parents — $2.6B

The Disney ecosystem:

More #1: Disney’s deal for Fox will be successful if it persuades investors to value it like Netflix

More #2: Disney Moves From Behemoth to Colossus With Closing of Fox Deal

More #3: Disney-Fox deal is complete; CEO Bob Iger’s big swing could change media industry

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.