For Disney — a media conglomerate that is both a major advertiser and the operator of ad channels for other marketers — changing consumer demands around streaming impacts everything from how it markets and distributes multimillion-dollar films to how it partners with brands.
Disney beat revenue expectations last quarter as its parks, experiences and products segment returned to profitability for the first time since the beginning of the pandemic. The company saw increased ad revenue across broadcast, cable and Hulu, and notched 116 million subscribers on Disney+. But as it prepares to announce its latest earnings report tomorrow (Nov. 10), results could show how consumer shifts are starting to take a toll on the company, with some financial analysts concerned that the long-term subscriber goal for Disney+ may be in jeopardy.
“For 100 years, Disney has been selling to an intermediary as a wholesaler and now they have to get into direct-to-consumer, and there are growing pains,” said John Rood, who served for more than a decade at both Disney and Warner Bros., most recently as senior vice president of marketing at the Disney Channel.
In recent years, Southern California's media studios and Northern California's tech companies have seemed to emulate each other. The Hollywood operations of media conglomerates are shifting to a DTC and data-driven model, while Silicon Valley behemoths are working to establish themselves as brand-builders and storytellers. The transitions have not been seamless, and the ramifications for marketers are…