< Back to reports

Disney: Hollywood giant, tech dwarf

2 November 2022
Access report

Disney’s core competitive advantages reside in its IP stock and in consumers’ lifelong affection for its brands, but the company faces a growing challenge from much larger tech platforms, pushing up the costs of production, sports rights and access to future IP.

Disney’s resources for content expenditure are now flat. The fat profit contribution from US linear channels may soon start to decline whereas direct-to-consumer losses at Disney+, Hulu and ESPN+ are still increasing, and the recovery of parks could be capped by the worsening economy.

With its recognisable IP, Disney will benefit if global video viewing continues to coalesce around fewer, bigger series, although a weak future cinema market— which Disney dominates and leverages—will impair the creation of big, new IP properties. China and India’s potential may not materialise soon.

Related reports

Video content production: Demand peaks, perceived value plunges

15 December 2021

Growth in European content supply may soon reach a tipping point as streamers shift from market grabs to profitability, while resources poured into production from states, consumers and advertisers are declining

The perceived value of long-form video content is dropping as consumers pay smaller amounts for a greater volume of choice, from which they are watching less

However, factors converge to prop up the European independent model: broadcasters’ resilient financing, the public favouring ‘deep’ local fare, talent’s preference for independents, market consolidation and new EU regulation

Access report

US content distribution: Studios go direct to consumer

13 April 2021

Despite relying on a narrow IP base, US content production is booming, overwhelming other markets and seeking alternative distribution to cinema.

Responding to the rise of Netflix and Amazon Prime, studios seek to shift distribution from wholesale to retail—but only Disney may succeed.

Most content is likely to remain accessed by consumers through bundles. Provided they engage with aggregation, European broadcasters can adjust to the new studio model.

Access report

Consumers endorse Disney's digital transition

12 February 2020

Recruiting 29 million subscribers in twelve weeks, Disney+ has stormed the US market. Furthermore, the two million gain achieved after the holidays and the completion of The Mandalorian, relatively high ARPU, and rising Hulu and ESPN+ subscriptions bode well.

Conversely, booming (but expected) losses of direct-to-consumer platforms—due to increase as Disney+ launches in Europe in March—are undermining group profitability.

But, with a total of 64 million direct subscribers Disney can now claim a size and momentum that puts it in the league of the pure digital platforms—crucially backing its stock market narrative.

Access report

  • Video content production: Demand peaks, perceived value plunges

    15 December 2021

    Growth in European content supply may soon reach a tipping point as streamers shift from market grabs to profitability, while resources poured into production from states, consumers and advertisers are declining

    The perceived value of long-form video content is dropping as consumers pay smaller amounts for a greater volume of choice, from which they are watching less

    However, factors converge to prop up the European independent model: broadcasters’ resilient financing, the public favouring ‘deep’ local fare, talent’s preference for independents, market consolidation and new EU regulation

    Access report

  • US content distribution: Studios go direct to consumer

    13 April 2021

    Despite relying on a narrow IP base, US content production is booming, overwhelming other markets and seeking alternative distribution to cinema.

    Responding to the rise of Netflix and Amazon Prime, studios seek to shift distribution from wholesale to retail—but only Disney may succeed.

    Most content is likely to remain accessed by consumers through bundles. Provided they engage with aggregation, European broadcasters can adjust to the new studio model.

    Access report

  • Consumers endorse Disney's digital transition

    12 February 2020

    Recruiting 29 million subscribers in twelve weeks, Disney+ has stormed the US market. Furthermore, the two million gain achieved after the holidays and the completion of The Mandalorian, relatively high ARPU, and rising Hulu and ESPN+ subscriptions bode well.

    Conversely, booming (but expected) losses of direct-to-consumer platforms—due to increase as Disney+ launches in Europe in March—are undermining group profitability.

    But, with a total of 64 million direct subscribers Disney can now claim a size and momentum that puts it in the league of the pure digital platforms—crucially backing its stock market narrative.

    Access report