With the cost of living crisis squeezing our finances, it's no wonder the streaming giants are urgently looking at ways to offer more value in a bid to survive the chop.
In the blink of an eye, it no longer appears it's enough to 'just' peddle content, with Disney Plus looking to branch out into an intriguing 'membership programme'.
Disney exec Kristina Schake told the Wall Street Journa l it was 'one of the exciting ideas' being explored in an effort to deliver more relevant entertainment, experiences and products to customers.
Rumours are the as-yet untitled service will function a lot like Amazon Prime, but instead of offering perks on delivery and groceries, it may serve up exclusive access to Disney travel experiences or even Marvel and Star Wars toys.
The current dire state of our economy is forcing households to consider cutting back on unnecessary spending – placing the relative luxury of streaming platforms right in the firing line.
So anything a content provider can do to spruce up its offering is paramount.
In may ways it’s a no-brainer for Disney to create a membership package that straddles its growing 'ecosystem'.
There could be exclusive early access to content, line-jumping at the theme parks and maybe even a Prime-like service for toys and gifts.
“This feels like a natural evolution”, said Jim Dyer, head of client leadership at marketing consultant Wunderman Thompson UK.
He added the Disney brand occupies a strong place in the hearts of millions of families, with many of us growing up with its theme parks, toys, cartoons and films.
Disney chief executive Bob Chapek has said in the past that Disney should flex its ‘franchise flywheel’ to cross-sell.
A new membership product would allow the entertainment giant to bridge the gap between physical experiences, digital storytelling and e-commerce.
If Disney were to create a handy, single ecosystem they could harvest valuable viewing and buying data from its customers.
This could allow a more targeted approach to giving the people what they want. Which as anyone knows is vital in business.
Ben Williamson, senior social strategist at creative agency AMV BBDO, says streaming will play a unique role in achieving this vision.
This is because directly beaming into people's homes ensures Disney enjoys a prominent, dependable place in family life, allowing the business to better understand what the viewer cares about and helping it bring new things directly to them.
Ben says the buzzphrase on everyone's lips at the moment is ‘might as well’.
He explained: “If your son is a Marvel fan, you might as well get them Disney+. If there’s a discount on toys, you might as well get one he wants for Christmas. Since you already have Disney+, your daughter might as well try out Star Wars. Since your kids are both fans and there’s a special park experience for members, you might as well have the family holiday there, too,” he claimed.
“Expect Disney to notice and optimise every one of those opportunities.”
Disney has gone to great lengths to diversify its streaming content, with more adult-themed content such as The Mandalorian.
Yet it still firmly remains a family brand at heart; two of its biggest offerings this year included the Toy Story spin-off Lightyear and a Pinocchio live-action remake.
“And it is families who will be carefully scrutinising their outgoings in the coming months and years,” said Wunderman’s Dyer.
Customers will be expecting more from brands as they tighten their purse strings. In the UK alone, a recent poll from the Institute of Practitioners in Advertising (IPA), which quizzed 2,000 people, found 33 per cent wanted brands to offer more value on promotions and 30 per cent were keen for them to reward loyalty.
“It makes complete sense,” said Dyer. “You only have to look at the recent Netflix subscription numbers to see it is no longer enough to be just a streaming service.”
Netflix made headlines earlier this year after it shed one million subscribers in the second quarter of 2022 .
It wasn't long before Disney overtook Netflix as the world's largest streame r, with 221.1 million members versus Netflix’s 220.7 million.
Not be outdone, Netflix is currently gearing up for a cheaper ad-funded tier set for roll-out later this year.
“While it will take some time to grow our member base for the ad tier and the associated ad revenues, over the long run, we think advertising can enable substantial incremental membership [through lower prices] and profit growth [through ad revenues],” the company told shareholders in a letter this summer.
While this move towards adverts could strengthen Netflix, there's no escaping that the platform is in a weaker position than its rivals when it comes to diversifying beyond streaming.
Disney's tentative steps towards membership are bolstered by its emotional connection with its audience, whereas Amazon Prime is built on function and the lure of free, quick delivery.
Plus Amazon has invested heavily in highly lucrative content such as The Lord of The Rings: The Rings of Power and The Boys.
And let's not forget Apple, which has also upped it game with star-studded shows and membership deals tied to mobile phone contracts.
Dan Hulse, chief strategy officer at indie agency St Luke’s, said Disney could learn a lot from Amazon.
"If I’m reading Marvel comics on my phone, my kids are playing ‘free’ Star Wars Lego games on the iPad and we’re getting ten per cent off that Disney cruise next summer, Disney stops being expendable,” he noted.
“It’s all about moving from ‘must-watch TV’ to ‘must-have service.’”
So will Netflix be able to build a compelling membership package to help families and friends through the cost of living crisis?
Watch this space - as ever, the Streaming Wars always makes for fascinating viewing.
Want to get the latest news about Netflix or Disney + direct to your inbox? Sign up for our Binge-Worthy newsletter HERE
