Disney at the crossroads of disruptive trends
Owing to its intangible nature and oligopolistic structure, the Media & Entertainment industry used to seem particularly difficulty to disrupt, and Disney was sitting right at the top. Yet, ten years after Netflix launched its online video streaming service, incumbents acknowledged that surviving the online revolution requires drastic changes. Until 2017, Disney had not taken the threat seriously. Its streaming strategy could be described as exploratory, at best: It had a 30% stake in Hulu, a third-party streaming platform jointly owned by media giants, and it sold its “old” content to Netflix. However, as Disney’s cable partners (e.g., Comcast) started to lose millions of highly profitable subscribers, the company realized that its half-hearted approach to online streaming was a recipe for disaster. That year marked the turnaround of Disney’s approach to streaming. First, it shocked the world in August, when it announced that it would gradually withdraw its movie content from Netflix. That same month, it revealed it had taken a controlling stake in BAMTech, a technology company providing streaming video technology. Finally, in December, it announced its intention to acquire 21st Century Fox in a deal that closed 15 months later, giving it a controlling stake in Hulu and greatly expanding Disney’s already formidable content library. With the nomination of Kevin Mayer at the helm of DTCI in March 2018, Disney realized its intention to transition into a B2C company. However, it was going to be a long road for Mayer, who faced both external and internal challenges. The case explores Mayer’s options to succeed in a rapidly evolving marketplace in which former partners and internet giants have become the competitors. It also examines how Mayer can position DTCI within Disney, addressing the complexities of collaborating with other business units and the potential cannibalization of the Media Networks division.
- Acquire a holistic view of what is needed to create and support a firm’s overall strategy by conducting a thorough analysis of the environment and the competitors.
- Identify key aspects of strategy formulation and strategy execution in a global dynamic and highly competitive industry.
Walt Disney Company, Netflix, Travel and Leisure, Entertainment, Media
Forward looking with last 3 years background illustration
IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.
Research Information & Knowledge Hub for additional information on IMD publications
Understanding your organizational capacity for agility and responding to events accordingly is the key to success in the new business environment, ...
In a post-pandemic era shaped by wars, climate change, and new technologies, Maha Hosain Aziz outlines the main risks and shock events that could d...
The case study examines recent aviation safety concerns at Boeing, focusing on manufacturing issues, leadership decisions and regulatory oversight....
Margherita Della Valle tells IMD President Jean-François Manzoni how she is delivering radical change to reenergize Vodafone and paving the way for...
The case is seen through the eyes of the newly appointed supply chain director at a cosmetics company based in Berlin. The general manager has task...
Few Business to Business (B2B) marketplaces have succeeded. Metalshub has successfully combined a software platform as a service, with a marketplac...
The case focuses on Contabilizei, a Brazilian startup providing online accounting services for small and medium-sized enterprises (SMEs). The case ...
IMD's Niccolò Pisani examines how a combination of clear-eyed analysis and a strong sense of purpose allowed the French biopharma to change course.
Companies that modularize and externalize their best capabilities are in a strong position to seize unexpected opportunities. Prediction is hard. T...
Leading Chinese companies are preparing to take advantage of exposure and opportunities as top sponsors and suppliers to the UEFA EURO 2024 Men’s S...
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD 24 June 2024
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Case reference: IMD-7-2457 ©2024
Research Information & Knowledge Hub for additional information on IMD publications
Case reference: IMD-7-2546 ©2024
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in MIT Sloan Management Review Summer 2024, vol. 65, no. 4
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications