July 28, 2024 • 14 mins
In the ever-evolving landscape of streaming services, two giants stand head and head – Netflix and Disney+. This episode dives deep into the battle between these two behemoths, exploring their strategies, strengths, weaknesses, and the ultimate quest to win over your loyalty.
Key Discussion Points:
Content Wars: A comprehensive analysis of the content offerings of both platforms. How do their original series, movies, and licensed content compare? Which platform caters to which audience?
The Power of Nostalgia: Disney+ leverages of nostalgia through its vast library of classic films and franchises. Can Netflix compete in this arena?
Technological Innovation: A comparison of the user interfaces, streaming quality, and overall user experience of both platforms.
Pricing Strategies: An in-depth look at the various subscription tiers and pricing models of Netflix and Disney+. Which platform offers better value for money?
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Picture this, it's a chill Friday night in 2019.
(00:03):
You're scrolling through Netflix trying to decide what to watch before you go to bed.
Suddenly, your phone buzzes and it's actually an email from Disney announcing their new streaming service, Disney Plus.
You pause now and your thumb is hovering over the Netflix app.
(00:24):
And you're thinking to yourself whether to stay within the Netflix app and watch something and go to sleep or do you go and check out the newest Disney Plus.
This moment, multiplied across millions of households, sparked what we now can call, hypothetically, the streaming wars.
(00:45):
I'm Ronit Sharmila and you're listening to The Big Brand Theory.
And today we are diving into how Netflix and Disney Plus battle for your attention, your dollars and most importantly, your loyalty.
Buckle up, we are about to stream some knowledge in our minds today.
(01:06):
All right, now let's rewind a bit.
It's 2007 and Netflix has just launched its streaming service.
Four years, then they go on to dominate the market.
Now, fast forward to November 2019, Disney Plus shows up on the scene and within a couple of days, they accrue 10 million subscribers.
(01:31):
And by the end of 2022, Disney Plus subscription count skyrockets to 164 million.
Meanwhile, Netflix wasn't exactly shaking in its boots.
They ended 2022 with an opening to 30 million subscribers globally.
But here's the kicker.
In the first half of 2022, Netflix lost subscribers for the first time in over a decade.
(01:57):
So what actually happened?
And how did these two entertainment giants duke it out for your viewership and for your loyalty?
And more importantly, what can we learn about brand loyalty from their marketing and branding strategies?
Let's break it down one by one.
(02:17):
First, let's start with Netflix's strategy since they came into the scene first.
Netflix's brand has always been about disruption.
You actually remember when they killed late fees with their DVD by mail service.
Then they went down to disrupt themselves by pivoting to streaming and their actual brand promises,
watch what you want, when you want and without commercials.
(02:43):
But in the phase of increasing competition, Netflix had to evolve just like every other brand.
They doubled down on original content.
Shows like the very famous Stranger Things and The Crown became a cultural phenomenon, as you all know.
And in 2020 alone, Netflix spent a staggering 17 billion dollars on content.
(03:05):
And they also got very, very smart about personalization.
Netflix's recommendation algorithm is so good that 80% of viewer activity is driven by it.
Think about that.
Four out of five shows you watch on Netflix are because their algorithm suggested it.
But here's where it gets actually interesting.
(03:26):
Netflix started focusing on creating gotta-see-it-now moments.
Remember the bird box challenge or how about the squid game costumes that were everywhere on Halloween 2021?
This strategy created a sense of apoc-, fear of missing out that kept the subscribers hooked.
Now, I want you to take a step back and think about your own Netflix habits.
(03:50):
Have you ever stayed up way too late binge watching a show because you just had to know what happened next?
That's not an accident. That's clever brand strategy at work.
Alright, okay. So now let's go to the other side of the coast and talk about the new kid on the block.
Disney+.
When they entered the streaming wars, they came in swinging with a very important secret weapon.
(04:13):
Not only important, a very powerful secret weapon, let's say, called nostalgia.
Think about it.
Nostalgia is a very powerful weapon because nostalgia is influenced by emotions.
When you think about your nostalgic past, your nostalgic childhood memories,
you become happy or it drives some kind of emotions within you.
(04:36):
And that is exactly what Disney+, was leveraging as their super weapon.
And Disney's brand has always been about magic, family and storytelling, as you all know.
And with Disney+, they leveraged their vast library of beloved content.
But they didn't stop there. That's the key part.
They also brought in heavy eaters like Marvel, Star Wars and National Geographic into their ecosystem.
(05:00):
And their strategy?
Create must-see original content that ties into their existing franchises.
But you should also understand Disney+, wasn't just about content.
They got creative in a way with their pricing strategy too.
They created Disney bundles, as you all know, which includes Disney+, The Who
and ESPN+, gave subscribers a ton of value for their money.
(05:23):
And by the end of 2022, over 40% of Disney+, subscribers had opted for this bundle.
It's a win-win situation, both for the consumers and the company.
So here's a question for you again.
Have we ever signed up for a streaming service just to watch one specific show?
Maybe have we ever subscribed to Disney+, just to watch, let's say, WandaVision?
(05:44):
That's the power of franchise loyalty at work.
Now we got Netflix with its vast library of original content and advanced personalized recommendation algorithms
up against Disney+, with its beloved franchises and nostalgic appeal.
How do these strategies translate into brand loyalty?
(06:05):
Let's actually take a look at some numbers.
According to a 2022 survey, Disney+, had the highest customer satisfaction rate,
specifically among US streaming services at 80%,
while Netflix actually came in a little short at 77%.
But here's where it gets really, really interesting.
The same survey found that Netflix was still considered the most indispensable streaming service,
(06:32):
with 31% of respondents saying they would keep Netflix if they could only keep one service.
With 31% of respondents saying they would keep Netflix if they could only keep one service.
Why do you think that is happening?
Think about it.
When you think about streaming service or streaming entertainment,
(06:54):
the first thing which pops into your mind is Netflix.
Or let me ask you this question.
What is the first ever streaming platform which came into existence?
99% of the chance you might say it's Netflix.
Now is that true?
It could be true or it could not be true.
But one thing is a fact.
Netflix is the first brand which got into your mind as a streaming platform.
(07:20):
As a streaming platform.
Or in simple words, they got your mind shared as the streaming platform
because they came in first and they positioned themselves as a streaming platform.
And all the other platforms like Disney Plus, Prime Video,
are these competitors trying to get that mind share
(07:40):
or part of the mind share in the consumer's mind
so as to lead them to get the market share.
I always believe mind share leads to market share.
And you should also understand that brand loyalty in the streaming world
isn't just about getting that mind share.
You can position yourself as the first product in the marketplace
but staying as the first product in the marketplace
(08:02):
depends on what kind of content you are creating,
how engaged your audience are.
And it's about becoming an integral part of people's life.
Netflix basically achieved this through sheer volume and variety of content
coupled with a user experience that feels tailored to each individual.
(08:24):
So here we can understand two key things.
One is personalization, other one is content.
Disney Plus on the other hand has tapped into emotional connections
with beloved characters and stories
which actually hooks them into the past like nostalgic experiences generally
but they also create new-age content as you know.
(08:45):
Now think about your own streaming habits.
Do you find yourself automatically opening one app over others
when you sit down to watch TV?
If so, if you open Netflix instead of Disney Plus
or if you open Disney Plus instead of Netflix
that's basically brand loyalty in action.
Now there could be instances where you want to watch a particular movie
(09:08):
and you don't know in which platform the movie is
but in that situation which platform do you think you will check first?
That is a platform I believe to have your mind share
because you hope that show is on that platform.
If not, you will see the second platform.
Strategies.
Let's move on to understanding what can we as marketers and brand enthusiasts
(09:30):
learn from this epic battle of the streams
or I would like to say epic battle for our mind share.
I would say there are five lessons or five key takeaways
which we could take from this and let's check them all out one by one.
Alright, number one, we should always try to understand our brand identity.
(09:53):
Alright, number one, we should always try to understand our brand identity
and make sure we always lean into it.
As you can see in Netflix was all about variety and personalization
while Disney on the other end is all about family, magic and nostalgia.
And if you think about it,
both have been successful in their own way.
(10:15):
That is because they always stay true to their core brand identities.
So as marketers and branding people,
it is always it is very important for us to evaluate
and understand our brand identity and communicate them in all our efforts.
It could be the marketing of digital strategy or through a product or service itself.
(10:38):
Number two, we should always try to understand our brand identity.
Always try to create must have moments.
And this strategy is better leveraged if you have good product or good service
as your brands or companies.
For example, you would have definitely experienced work.
(11:01):
Think about the zero-begin situation when you go through these platforms
looking for a movie, let's say you take Netflix
and you search for a movie, you find a particular movie
which you know has great reviews, so you know the content is good.
And underneath the movie, you see a small statement
which says available until the end of next week.
Now, as you know, the content is good,
(11:22):
you already have the perception that you want to watch the show.
And the sense that the movie is going to be only available
for a particular period of time in the future
creates a sense of urgency or the fear of missing out.
And that is one of the very important factor which strikes consumer decision making.
And that is because when fear of missing out emerges in the consumer's mind,
(11:44):
they're emotionally driven and they don't want to miss out something
which is valuable which they know is really great.
And at that point, their subconscious mind takes over
the decision making process rather than their logical mind.
So as marketers, we should always work on ways
on how we can actually create must have moments like this
so that we can get the consumers hooked on with us,
(12:06):
leading to higher engagement.
Number three, always try to leverage data, but don't forget the human touch.
Now, you know, Netflix's algorithm is incredible,
but Disney's emotional appeal is equally powerful too.
And the best strategy, which has always, always worked for me in the past,
and even in the present, is leveraging data to understand
(12:27):
what kind of emotions work with these particular demographic audience.
You're trying to market on brand too and create emotion driven marketing strategies
based on the data insights you have.
Number four, continuously innovate.
Now, as you know, both of these companies, Netflix and Disney Plus,
have had to adapt rapidly in the face of changing consumer behaviors
(12:49):
and increasing competition.
And that rapid adaptability is what gave them this market share they have.
Number fifth and finally, bundle value.
Consumers like you and me like a good value.
And Disney's success with its bundle offer shows that sometimes
more really is more when it comes to perceived value.
(13:13):
So the next time when we are working on a marketing or branding strategy,
it will be really great if we could ask these two questions to ourselves.
And these two questions are, number one,
how can I make my brand as indispensable as Netflix?
And question number two,
how can I create an emotion connection as strong as the Disney's?
(13:39):
All right, as we wrap up this episode, remember this,
in the streaming war between Netflix and Disney Plus,
there is no clear winner yet.
Both Netflix and Disney Plus have shown that there's more than one way to build brand loyalty.
But the actual real winners in this equation
are the viewers, you and me, who get to enjoy this golden age of digital content.
(14:02):
So the next time you're going through these platforms deciding what to watch,
take a moment to appreciate the branding brilliance behind your choice.
And hey, maybe apply some of these key takeaways to your own marketing and branding strategies.
I will definitely apply them when the opt situation arises.
So should you too.
And that's it.
That's the end of the episode.
I'm Ronan Sharmila.
(14:23):
And this has been The Big Brand Theory.
See you in the next.
Picture this, it's a chill Friday night in 2019.
(00:03):
You're scrolling through Netflix trying to decide what to watch before you go to bed.
Suddenly, your phone buzzes and it's actually an email from Disney announcing their new streaming service, Disney Plus.
You pause now and your thumb is hovering over the Netflix app.
(00:24):
And you're thinking to yourself whether to stay within the Netflix app and watch something and go to sleep or do you go and check out the newest Disney Plus.
This moment, multiplied across millions of households, sparked what we now can call, hypothetically, the streaming wars.
(00:45):
I'm Ronit Sharmila and you're listening to The Big Brand Theory.
And today we are diving into how Netflix and Disney Plus battle for your attention, your dollars and most importantly, your loyalty.
Buckle up, we are about to stream some knowledge in our minds today.
(01:06):
All right, now let's rewind a bit.
It's 2007 and Netflix has just launched its streaming service.
Four years, then they go on to dominate the market.
Now, fast forward to November 2019, Disney Plus shows up on the scene and within a couple of days, they accrue 10 million subscribers.
(01:31):
And by the end of 2022, Disney Plus subscription count skyrockets to 164 million.
Meanwhile, Netflix wasn't exactly shaking in its boots.
They ended 2022 with an opening to 30 million subscribers globally.
But here's the kicker.
In the first half of 2022, Netflix lost subscribers for the first time in over a decade.
(01:57):
So what actually happened?
And how did these two entertainment giants duke it out for your viewership and for your loyalty?
And more importantly, what can we learn about brand loyalty from their marketing and branding strategies?
Let's break it down one by one.
(02:17):
First, let's start with Netflix's strategy since they came into the scene first.
Netflix's brand has always been about disruption.
You actually remember when they killed late fees with their DVD by mail service.
Then they went down to disrupt themselves by pivoting to streaming and their actual brand promises,
watch what you want, when you want and without commercials.
(02:43):
But in the phase of increasing competition, Netflix had to evolve just like every other brand.
They doubled down on original content.
Shows like the very famous Stranger Things and The Crown became a cultural phenomenon, as you all know.
And in 2020 alone, Netflix spent a staggering 17 billion dollars on content.
(03:05):
And they also got very, very smart about personalization.
Netflix's recommendation algorithm is so good that 80% of viewer activity is driven by it.
Think about that.
Four out of five shows you watch on Netflix are because their algorithm suggested it.
But here's where it gets actually interesting.
(03:26):
Netflix started focusing on creating gotta-see-it-now moments.
Remember the bird box challenge or how about the squid game costumes that were everywhere on Halloween 2021?
This strategy created a sense of apoc-, fear of missing out that kept the subscribers hooked.
Now, I want you to take a step back and think about your own Netflix habits.
(03:50):
Have you ever stayed up way too late binge watching a show because you just had to know what happened next?
That's not an accident. That's clever brand strategy at work.
Alright, okay. So now let's go to the other side of the coast and talk about the new kid on the block.
Disney+.
When they entered the streaming wars, they came in swinging with a very important secret weapon.
(04:13):
Not only important, a very powerful secret weapon, let's say, called nostalgia.
Think about it.
Nostalgia is a very powerful weapon because nostalgia is influenced by emotions.
When you think about your nostalgic past, your nostalgic childhood memories,
you become happy or it drives some kind of emotions within you.
(04:36):
And that is exactly what Disney+, was leveraging as their super weapon.
And Disney's brand has always been about magic, family and storytelling, as you all know.
And with Disney+, they leveraged their vast library of beloved content.
But they didn't stop there. That's the key part.
They also brought in heavy eaters like Marvel, Star Wars and National Geographic into their ecosystem.
(05:00):
And their strategy?
Create must-see original content that ties into their existing franchises.
But you should also understand Disney+, wasn't just about content.
They got creative in a way with their pricing strategy too.
They created Disney bundles, as you all know, which includes Disney+, The Who
and ESPN+, gave subscribers a ton of value for their money.
(05:23):
And by the end of 2022, over 40% of Disney+, subscribers had opted for this bundle.
It's a win-win situation, both for the consumers and the company.
So here's a question for you again.
Have we ever signed up for a streaming service just to watch one specific show?
Maybe have we ever subscribed to Disney+, just to watch, let's say, WandaVision?
(05:44):
That's the power of franchise loyalty at work.
Now we got Netflix with its vast library of original content and advanced personalized recommendation algorithms
up against Disney+, with its beloved franchises and nostalgic appeal.
How do these strategies translate into brand loyalty?
(06:05):
Let's actually take a look at some numbers.
According to a 2022 survey, Disney+, had the highest customer satisfaction rate,
specifically among US streaming services at 80%,
while Netflix actually came in a little short at 77%.
But here's where it gets really, really interesting.
The same survey found that Netflix was still considered the most indispensable streaming service,
(06:32):
with 31% of respondents saying they would keep Netflix if they could only keep one service.
With 31% of respondents saying they would keep Netflix if they could only keep one service.
Why do you think that is happening?
Think about it.
When you think about streaming service or streaming entertainment,
(06:54):
the first thing which pops into your mind is Netflix.
Or let me ask you this question.
What is the first ever streaming platform which came into existence?
99% of the chance you might say it's Netflix.
Now is that true?
It could be true or it could not be true.
But one thing is a fact.
Netflix is the first brand which got into your mind as a streaming platform.
(07:20):
As a streaming platform.
Or in simple words, they got your mind shared as the streaming platform
because they came in first and they positioned themselves as a streaming platform.
And all the other platforms like Disney Plus, Prime Video,
are these competitors trying to get that mind share
(07:40):
or part of the mind share in the consumer's mind
so as to lead them to get the market share.
I always believe mind share leads to market share.
And you should also understand that brand loyalty in the streaming world
isn't just about getting that mind share.
You can position yourself as the first product in the marketplace
but staying as the first product in the marketplace
(08:02):
depends on what kind of content you are creating,
how engaged your audience are.
And it's about becoming an integral part of people's life.
Netflix basically achieved this through sheer volume and variety of content
coupled with a user experience that feels tailored to each individual.
(08:24):
So here we can understand two key things.
One is personalization, other one is content.
Disney Plus on the other hand has tapped into emotional connections
with beloved characters and stories
which actually hooks them into the past like nostalgic experiences generally
but they also create new-age content as you know.
(08:45):
Now think about your own streaming habits.
Do you find yourself automatically opening one app over others
when you sit down to watch TV?
If so, if you open Netflix instead of Disney Plus
or if you open Disney Plus instead of Netflix
that's basically brand loyalty in action.
Now there could be instances where you want to watch a particular movie
(09:08):
and you don't know in which platform the movie is
but in that situation which platform do you think you will check first?
That is a platform I believe to have your mind share
because you hope that show is on that platform.
If not, you will see the second platform.
Strategies.
Let's move on to understanding what can we as marketers and brand enthusiasts
(09:30):
learn from this epic battle of the streams
or I would like to say epic battle for our mind share.
I would say there are five lessons or five key takeaways
which we could take from this and let's check them all out one by one.
Alright, number one, we should always try to understand our brand identity.
(09:53):
Alright, number one, we should always try to understand our brand identity
and make sure we always lean into it.
As you can see in Netflix was all about variety and personalization
while Disney on the other end is all about family, magic and nostalgia.
And if you think about it,
both have been successful in their own way.
(10:15):
That is because they always stay true to their core brand identities.
So as marketers and branding people,
it is always it is very important for us to evaluate
and understand our brand identity and communicate them in all our efforts.
It could be the marketing of digital strategy or through a product or service itself.
(10:38):
Number two, we should always try to understand our brand identity.
Always try to create must have moments.
And this strategy is better leveraged if you have good product or good service
as your brands or companies.
For example, you would have definitely experienced work.
(11:01):
Think about the zero-begin situation when you go through these platforms
looking for a movie, let's say you take Netflix
and you search for a movie, you find a particular movie
which you know has great reviews, so you know the content is good.
And underneath the movie, you see a small statement
which says available until the end of next week.
Now, as you know, the content is good,
(11:22):
you already have the perception that you want to watch the show.
And the sense that the movie is going to be only available
for a particular period of time in the future
creates a sense of urgency or the fear of missing out.
And that is one of the very important factor which strikes consumer decision making.
And that is because when fear of missing out emerges in the consumer's mind,
(11:44):
they're emotionally driven and they don't want to miss out something
which is valuable which they know is really great.
And at that point, their subconscious mind takes over
the decision making process rather than their logical mind.
So as marketers, we should always work on ways
on how we can actually create must have moments like this
so that we can get the consumers hooked on with us,
(12:06):
leading to higher engagement.
Number three, always try to leverage data, but don't forget the human touch.
Now, you know, Netflix's algorithm is incredible,
but Disney's emotional appeal is equally powerful too.
And the best strategy, which has always, always worked for me in the past,
and even in the present, is leveraging data to understand
(12:27):
what kind of emotions work with these particular demographic audience.
You're trying to market on brand too and create emotion driven marketing strategies
based on the data insights you have.
Number four, continuously innovate.
Now, as you know, both of these companies, Netflix and Disney Plus,
have had to adapt rapidly in the face of changing consumer behaviors
(12:49):
and increasing competition.
And that rapid adaptability is what gave them this market share they have.
Number fifth and finally, bundle value.
Consumers like you and me like a good value.
And Disney's success with its bundle offer shows that sometimes
more really is more when it comes to perceived value.
(13:13):
So the next time when we are working on a marketing or branding strategy,
it will be really great if we could ask these two questions to ourselves.
And these two questions are, number one,
how can I make my brand as indispensable as Netflix?
And question number two,
how can I create an emotion connection as strong as the Disney's?
(13:39):
All right, as we wrap up this episode, remember this,
in the streaming war between Netflix and Disney Plus,
there is no clear winner yet.
Both Netflix and Disney Plus have shown that there's more than one way to build brand loyalty.
But the actual real winners in this equation
are the viewers, you and me, who get to enjoy this golden age of digital content.
(14:02):
So the next time you're going through these platforms deciding what to watch,
take a moment to appreciate the branding brilliance behind your choice.
And hey, maybe apply some of these key takeaways to your own marketing and branding strategies.
I will definitely apply them when the opt situation arises.
So should you too.
And that's it.
That's the end of the episode.
I'm Ronan Sharmila.
(14:23):
And this has been The Big Brand Theory.
See you in the next.
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