How Disney—and Others—Might Reimagine Bundles for the Future

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Disney remains one of the most admired brands in the world because it delivers unforgettable stories that move people. It knows how to touch people’s hearts and has built an ecosystem where consumers can relive their beloved movies or TV shows through merchandise, music, live experiences, theme parks, etc. – a world class system that few entertainment companies can compete with .

But like others, Disney is having a rough year and with the pandemic not looking to be slowing down, Disney could do things differently to keep the company flowing.

As many Americans spend more time at home, streaming television has become a primary source of entertainment and escape. Earlier this year, the company confirmed that it had 26.5 million subscribers in the US alone. What if Disney refined its Disney + streaming package to include perks from other areas of customer contact? Imagine an overview (Professor Scott Galloway’s term for a recurring revenue package) that included discounts on merchandise, parking tickets, resorts, cruises, exclusive access to unique experiences, and other content platforms like ESPN and Hulu. A simplified package that allows fans to immerse themselves in all facets of the company, and gives Disney the ability to build brand loyalty with their established fan base who already subscribe to their streaming service.

To give the consumer more flexibility, consider trying different tiered bundle packages so fans can determine how much they want to engage with the brand. With the bundling of other services, higher package prices would be a matter of course. The tier would make the perks more generous, e.g. B. higher discounts on goods. This keeps fans loyal to the brand; You will tend to spend more money on other Disney companies because of the perceived discounts.

Here is a paper napkin math to illustrate the value of the idea:

Disney + is well positioned among its competitors with its proven franchises and a destination for an abundance of family-friendly content. With so many households tightening their belts this year, consumers need to be more careful and make sure they are stretching every dollar. And with many Americans spending more time at home, streaming television has become a major source of entertainment and escape.

Does the bundle approach work? It’s not about apples, it’s about Amazon. The Prime Service, which uses two-day shipping as the basis for the annual membership overview, includes great benefits such as: Emmy award-winning content via Prime Video, Prime Music, Prime Gaming, Amazon Photos, Prime Reading, early access to offers and discounts on their other services. According to Consumer Intelligence Research Partners (CIRP) in 2018, Amazon Prime in the US is seeing a renewal rate of more than 90% after the first year. This means that the Rundle approach can provide Disney with a predictable flow of revenue year on year.

This is difficult to do because Disney is currently structured. It would mean significant changes internally to support this concept. But just like Bob Iger took the big bet with Disney + to sacrifice short-term profits in order to stay competitive, this seems like a worthwhile opportunity to explore. Throughout its rich history, Disney has proven time and again that it can be innovative and adaptable, and with this unexpected pandemic, it may have to do it all over again.

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