How Disney+ Is Giving Netflix Goosebumps: The Marketing Strategy Decoded

Walt Disney, just the name brings up childhood memories and nostalgic feelings, like the excitement of going to Disneyland or the fantasy of a movie that began with the iconic castle in the opening credits. It’s no wonder that when the brand decided to go up against streaming giants like Netflix, Prime Video, and Apple TV, it came out with flying colors. Let’s look at the marketing strategy that made it possible.

Disney+Opens a new window launched five weeks before Christmas 2019 and it was an immediate hit. Well prepared with multiple original series and movies, especially NoelleOpens a new window , for the holidays, and The MandalorianOpens a new window , the content-rich powerhouse won early subscribers’ hearts. Although the service launched only in the U.S., Canada, Australia, New Zealand and the Netherlands, a survey of 63,833 Americans by PiplsayOpens a new window revealed that the platform had 25 million subscribers in just the first few weeks. Here are some other stats from the survey:

• Over 50% of 18 to 38-year-olds have subscribed to Disney Plus
• 41% of men spend more time on Disney Plus, as compared to 33% of women
• 33% of men unsubscribed from other platforms after signing up for Disney Plus, as compared to 22% of women
• 53% of 39 to 53-year-olds have subscribed to Disney Plus primarily for their kids
• 51% of Gen Zers and Millennials think Disney Plus is as good as Netflix
• 48% of Gen Zers and 40% of Millennials think Disney Plus is better than Amazon Prime
   

These stats outline the impact Disney+ has had in just three months since launch. This has led to questions about how it could be a real cause for concern for streaming services like Netflix. Streaming apps are rising in popularity and competing harder than ever, and with the significant success Disney+ has had, they now have a real challenge on their hands.

Marketers know all about the need to up their brand game, and it’s essential in every industry today. So, let’s take a page from Walt Disney’s handbook. What contributed to Disney+ gaining such momentum and recognition in only three months?

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7 Reasons Why Disney+ Became an Instant Success

Garnering more than 28 million subscribers in one quarter in no mean feat. The Walt Disney CompanyOpens a new window has multiple things going for them and the streaming app was considered a gamble that seems to have paid off. Let’s look at the marketing strategy and all the reasons that took Disney+ to the top of the streaming world.

1. The one thing Disney has that few others do – the brand name conjures nostalgia and joy.  ‘Disney’ evokes fantasy and a world of the imagination, and that’s not easy to compete against. Most of us have good memories growing up to classics such as Bambi, The Jungle Book, The Lion King, High School Musical, Pirates of the Caribbean, and countless others. Disney, the brand, embodies all that euphoria and magic.

I haven’t seen this since I was a kid. What a great time this movie is! #NowWatchingOpens a new window #FlightOfTheNavigatorOpens a new window #DisneyPlusOpens a new window pic.twitter.com/eCTV0e6xhaOpens a new window

— Necronomnom 🎃🖤🔪 (@SupGirl) February 19, 2020Opens a new window

2. Their many acquisitions through the years, as if it was all part of a greater plan foreseeing the probability of streaming. From networks – Fox, to sports – ESPN, franchises – The Muppet Show, Animation Studios – Pixar, superhero conglomerates – Marvel with their universe of blockbuster movies, to entertainment behemoths such as Star Wars, 21st Century Fox, and National Geographic. The treasure-trove of all-time classics and hits!

                                Disney+ Has it All

3. Imagine the power to market a product that encompasses all these properties. For the launch of the app, promotions were placed across these channels and brands. Disney-owned retail stores, and the TV networks, including ABC, ESPN, Freeform, and FX, promoted the app extensively before launch.

4. It’s hard to imagine, but a product seemingly superior than the current monarch, kept its pricing for all this at just $6.99, compared to the $12.99 for Netflix’s popular plan.

5. Verizon Communications Inc. customers on unlimited data are eligible for a free year of the streaming service. 20% of Disney+ subscribers signed up through the network in its initial days.

6. They created a bundled deal for $12.99 monthly, where customers get Disney+ with ESPN+ and Hulu (also owned by Disney).

7. Baby Yoda from the Disney+ series The Mandalorian, which premiered the day the app launched, has become a sensation in pop culture. The character went viral and received much love, featuring in memes across the internet.

It is official. I now beleive that the whole world would die for #BabyYodaOpens a new window . #DisneyOpens a new window what have you done? #babyyodaproblemsOpens a new window https://t.co/j6P0jOo441

— AirCondaTv (TTV) (@AircondaTvT) February 19, 2020Opens a new window

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Lessons for Marketers

Walt Disney came in 12 years after Netflix but has managed to become a worthy contender in the streaming wars. For brands and marketers everywhere, it will be looked upon as a case study when launching a new product with established competitors in years to come. Here are our key takeaways and how you can implement them.

1. Audience connect
 

In Time’s featureOpens a new window on Bob Iger, Disney’s CEO, they mentioned how he transformed his enormous media company into a gargantuan media and tech business while ensuring that Walt Disney Co.’s products remain widely beloved. To be a successful people’s brand it is essential to know how stories connect to your audiences and align the way you tell your story to them. Depending on your product, personify your brand so it appeals to all audiences across gender, age, demographics, etc.

2. Brand partnerships
 

It’s always a good idea to tie up with brands that complement yours. More often than not, consumers acquire brand loyalty when they come across your brand through a brand they trust. Partnering with a service provider – be it telecom, financial, or hospitality – can have a record-breaking impact on your revenue targets.

3. Optimally using resources and assets
 

You need to use paid, owned, and earned media strategically. Disney promoted the app at theme parks, cruise lines, and city buses. The brand also leveraged assets – LA Times reportedOpens a new window , ABC’s (part of Disney) “Dancing With the Stars,” dedicated an episode to Disney stories and characters. Iger appeared on “On Air With Ryan Seacrest,” touting Disney+ as “the answer to today’s consumer’s dreams.” Making the best of your properties and promotions on talk shows, coupled with hardcore advertising, can make all the difference.

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With your focus on ‘Make it or break it’ and the right marketing strategy, you could crack the code to succeed.  “Disney+ is going to be treated as the most important product that the company has launched… With the launch of Disney+, we’re making a huge statement about the future of media and entertainment and our continued ability to thrive in this new era,” said IgerOpens a new window . The popularity of video streaming is increasing quickly, but Disney+ took its time, with two years of planning, to create a valuable product that could surpass competitors.

As the UK and most of Europe await the March 24 launch date, world domination doesn’t seem too far away.

How will you use Disney’s marketing strategy to influence your advertising and marketing campaigns in 2020? Tell us on Twitter,Opens a new window LinkedIn, oOpens a new window r FacebookOpens a new window ; we’re listening!