0K - views

Streaming, happily ever

/. after. . DeGroote. Consulting Group. Elizabeth, . Chinomnso. , Marley, Britney. 1. 2. ever/after. Augmented reality. Lightsaber enabled. 3. How might Disney . disrupt online streaming . leveraging synergies .

Embed :
Download Link

Download - The PPT/PDF document "Streaming, happily ever" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.

Streaming, happily ever






Presentation on theme: "Streaming, happily ever"— Presentation transcript:

Slide1

Streaming,happily ever/after

DeGroote Consulting GroupElizabeth, Chinomnso, Marley, Britney

1

Slide2

2

Slide3

ever/after

Augmented reality

Lightsaber enabled

3

Slide4

How might Disney disrupt online streaming leveraging synergies in the organization?

4

Slide5

Key issues

5

Slide6

Key issues

- Importance +

- Urgency +Disrupted industryDrastic changes within media and entertainment industryOnline streaming is growing quicklyIncreased number of competitorsDisrupted industryChanging consumer preferences

Acquisition

Changing consumer preferences43.6% YoY customers are leaving TV behind for internetCustomers looking for low cost and high convenienceAcquisitionCulture must be considered when merging two companiesAbility to generate maximum value from additional content70-90% of acquisitions fail to deliver the adequate value

Slide7

Analysis

7

Slide8

Acquisition analysis8

You purchased…Fox filmFx Networks

National GeographicHuluStar TV India39% of Skyfor…$71.3b cash & stockto get…More contentMore direct relationships with customersInto the streaming marketIncreased Indian market shareKey takeawayThe Fox acquisition has potential to result in significant revenue growth and enable Disney to reimagine streaming.

Slide9

Competitive analysis9

Key opportunities exist to capitalize on Netflix’s weaknesses

InconsistencyInteractivity

Transparency

Key takeaway

To disrupt Netflix, Disney must act strategically and leverage internal strengths to attack external weaknesses.

Slide10

Analysis of Disney’s streaming capabilities10

Valuable

Disney is already generating value through existing streaming services (e.g. hulu), however value captured in the market is indirect and not maximized.RareDisney has access and control of exclusive character and content use, however Disney allows other streaming services to benefit from their rare content.InimitableDisney’s current streaming services were late to market and imitated other service providers rather than building a unique experience and/or business model.Organized to capture valueDisney is not currently organized to capture value in the online streaming market. Key takeawayDisney must re-organize their business and leverage existing intellectual property to maximize streaming market revenues.

Slide11

Opportunities

11

Slide12

Opportunities

1reimagine hulu kids

2eTheatre3ever/after integrated experience platform12

Slide13

1reimagine hulu kids

Key benefits

Leverages existing hulu platformContent can be exlusively used on hulu kidsExisting content enables increased speed-to-marketKnowledge and understanding of target marketKey considerationsDoesn’t improve strategic position relative to NetflixDifficult to capture existing Netflix kids usersOnly generated cash flows for limited period 13

Reimagine the existing

hulu kids experience with interactive Disney games and unlockable content for Disney park visitors or individuals with specific Disney products

Slide14

2eTheatre

Key benefits

Eliminates middle man and provides direct access to customer baseIncreased margin Increased control of user experienceKey considerationsUntested revenue model for direct-to-consumer releases onlyInability to generate ongoing recurring revenue stream14Develop a new direct-to-consumer release platform, eTheatre, where users can watch new Disney releases live with fans worldwide for limited time periods

Slide15

3ever/after integrated experience platform

Key benefits

Disruptive user experience enabled by emerging technologyLeverages strengths of acquisition and existing Disney portfolio content Increased control and ability to continuously engage customersKey considerationsRequires contingent workforce to support interim activities prior to launchAdditional content must be created to support new experiences15Develop ever/after integrated experience platform which allows user to stream content, and engage with Disney portfolio content and characters in new ways (e.g. using augmented or virtual reality, smart devices) and transition existing hulu users to ever/after

Slide16

Decision matrix

▲ Improves current state ● Maintains current state

▼ Harms current state1reimagine hulu kids2eTheatre3ever/after integrated content streaming platform

Valuable

▲▲▲Rare●●▲

Inimitable▲

● ▲Organized to capture value▼

▲▲

16

Slide17

Preferred solution

17

Slide18

ever/after

Augmented reality

Lightsaber enabled

18

Slide19

mousemedia ► operations ► user experience

► synergy ► ever/after

media

operations

user experiencesynergyever/afterYear 2

19

Slide20

Implementation

20

Slide21

mousemedia ►

operations ► user experience ►

synergy ► ever/afterKey activitiesDevelop new contentMarket researchInnovation labAcross all subsidariesKey considerationsExclusivity of contentChanging media landscape

media

Year 2

Slide22

mousemedia

► operations ► user experience ►

synergy ► ever/afterKey activitiesContingent workforceAdvertisement development (interactive)Accessory developmentInvestor relationsAcquire top talent from Netflix content creations teamKey considerationsAd team must agree to create interactive contentOnboarding of contingent workforce

media

operationsYear 2

Slide23

mousemedia

► operations ► user experience ►

synergy ► ever/afterKey activitiesInteractive showsVirtual realityAugmented realityInteractive ads (generate revenue)Connecting usersEaster eggs to match accessoriesKey considerationsCompatibility of accessoriesUnderstanding customer preferences

media

operationsuser experienceYear 2

Slide24

mousemedia

► operations ► user experience

► synergy ► ever/afterKey activitiesEliminate redundancies (increase operating income)Create synergies between content (generate revenue)Reverse engineer content (generate revenue)Across all of Walt Disney StudiosKey considerationsCross functional teams requiredAbility to leverage content but remain distinct branding

media

operationsuser experiencesynergyYear 2

Slide25

mousemedia ►

operations ► user experience ►

synergy ► ever/afterKey activitiesHappily ever afterCreate social mediasAllow Hulu users 1year freeInfluencer promotionWord of mouthEver/after enabled packaging Key considerationsEntering a competitive market

media

operationsuser experiencesynergyever/afterYear 2

Slide26

Investment

Year 1

Year 2media$3.5m$2.5moperations$10.6muser experience$5.0msynergy$1.0m

ever/after

$1.0mGrand Total$21.1m$2.5m

Slide27

Revenue Growth

Slide28

Operating income

Slide29

NPV

2019

2020Incremental CF$15$15Cost-$24Rate11%NPV2

Slide30

Key metrics

30

Slide31

Key success factors

factor

targettimelinePeopleever/after subscriber base9.7mil2 yearsCustomer satisfaction

90%

2 yearsProfitIncremental cashflows15milYoYNet profit margin5%1 yearsProcessImprove inefficiencies within workforce1% increases1 year

Revamp key movie segment based on purchase of FoxInitial screenplay adaptation1.5 years

$

Slide32

Risks + mitigation

Slide33

Risks + mitigation

risk

likelihoodimpactmitigationNetflix provides similar survey HMDisney content is exclusive to ever/after platform, which is marketed as an experience platformCustomers do not want to engage in online platform due to

preference

for content on other servicesLHEnsure wide variety of content across all Disney subsidaries, conduct market researchHigh cost of integration across all platformsMHResearch and development in innovation lab to ensure integration and ease of use

Slide34

Next steps

34

Slide35

35

Slide36

ever/after

Augmented reality

Lightsaber enabled

36

Slide37

mouse

media

operations

user experience

► synergy ► ever/after

media

operations

user experience

synergy

ever/after

Year 2

37

Slide38

Appendix

38

Slide39

Detailed costing (1/3)

Year 1

Year 2media$3.5m$2.5mContent development$2.5m$2.5mInnovation LabMarket research$1.0m

operations

$10.6mAccessory Development$2.0mAcquire Top Netflix Talent$5.0mContingent Workforce$3.6m

Slide40

Detailed costing (2/3)

Year 1

Year 2user experience$5.0mAugmented Reality$1.0mConnecting Users$1.5mEaster Eggs$1.5m

Interactive Ads

Virtual Reality$1.0msynergy$1.0mEliminating RedundanciesReverse Engineered Content$1.0mSynergies Between Content

Slide41

Detailed costing (3/3)

Year 1

Year 2ever/after$1.0mHulu TrialInfluencersSocial Media$1.0mProduct

labellinh

Grand Total$21.1m$2.5m

Slide42

Video streaming market (in millions USD)

in millions

2017201820192020202120222023Video Streaming Market3237.4443.8051.25

59.96

70.1582.08CAGR17%17%17%17%17%17%Capture 26%26%9.7311.3813.3215.5918.24Ever after price877.8791.11

106.60124.72145.92

Slide43

Revenue breakdown by segment

2019

20182017Media Networks$6,620$6,156$5,866Parks and Resorts$5,557$5,193$4,894Studio Entertainment$3,461$2,878

$2,393

Consumer Products & Interactive Media $924$1,001$1,085Revenue Total$16,562$15,228$14,238

Slide44

Segment operating income as a % of revenue

Media Networks

$2,025.6530%Parks and Resorts$1,488.3026%Studio Entertainment$886.1125%Consumer Products & Interactive Media$308.1532%Total$4,708.20

 

IMPROVED OPERATING INCOME12%5%

Slide45

Questions45

Can Disney battle digital disruption and shake up the streaming market?Can the Fox acquisition help Disney in gaining a timely advantage in streaming content wars or was it too late for it to succeed in streaming?