Disney’s pivot to streaming is wake-up call to industry

Writing in The Conversation, Cambridge Judge Business School Visiting Fellow Hamza Mudassir (pictured) says that the 97 year-old media conglomerate Disney” is now more like Netflix than ever before.”

According to Mudassir, Disney will be reducing its focus from theme parks, cruises, cinema releases and cable TV. Instead, the Disney+ streaming service is the only clear winner among its portfolio of services.

 

Mudassir says: “A better funded Disney+ that is willing to stream highly anticipated theatrical releases on day one will also sharply impact the ability of cinema chains to bounce back whenever the pandemic subsides.”

 

The academic issues a warning to traditional media houses: “Traditional cable and linear TV companies will likely feel more pressure from a faster-growing Disney+. This is because more streaming subscriptions can drive an increased number of cancelled cable TV packages as well as disinterested advertisers, who will continue to reduce their advertising spend on linear TV thanks to lower viewership and engagement.”