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Friday, February 11, 2022

The Risks of Disney’s Quick Fix for Subscriber Growth

Disney has figured out an ingenious way to jump-start its streaming subscriber growth—give people less of a choice! Since late December, Disney has automatically included Disney+ and ESPN+ in one of its Hulu offerings, at a slightly higher price than it previously charged, we learned today. Ingenious! It’s a reminder that the customer-unfriendly DNA of the television industry still lurks in the genes of companies like Disney.

Also read:
Could Moonbug Kids replace Disney Junior on DStv and Baby TV on StarSat?
Baby TV could be on the chopping block
The last FOX Life available in the United States closes down in March
- BBC Kids launches in the United States, could Africa be next?
Why VH1 Classic was terminated on DStv?
tvN pushing to become a permanent linear channel in Africa
Could Nicktoons be discontinued in Africa and likely the rest of the world?

There’s only one reason you take this action, and it’s to juice subscriber numbers. The strategy is working so far. Disney executives said the bundling—which they called a “strategic decision,” whatever that means—accounted for half of the surprisingly strong North American subscriber additions for Disney+ in the quarter. And sure, it’s a good deal for consumers right now: Even after the price raise, the bundle implies a hefty discount on all three services. But it’s a slippery slope. Forcing people to take services they don’t necessarily want is how the cable TV became a cash-printing machine, before steady price rises eventually alienated so many customers it went into a decline that is still underway.

Still, TV executives across the industry will surely take heart from Disney’s move. There have been straws in the wind for a while that executives at companies like Discovery—which today said it got regulatory approval to buy HBO Max’s parent, WarnerMedia—would like to offer packages of different streaming services. The current arrangement, low-cost services with lots of programming, is a money-losing proposition. Done right, bundling could offer a solution to streaming’s poor economics. But if it is mishandled—and who would rule out that happening!—it may play into the hands of companies like Netflix and Amazon, which tend to follow a more consumer-friendly approach.

Also read:
February on Comedy Central, Nickelodeon and more
Could Moonbug Kids replace Disney Junior on DStv and Baby TV on StarSat?
More Big City Greens coming to Disney Channel and Disney+
February on Cartoon Network and Boomerang
Baby TV could be on the chopping block
Thomas And Friends: All Engines Go might launch on Boomerang
Cartoonito launches on Boomerang across Europe possibly as a trial run before scrapping the channel
- Lego launches dedicated kids channel

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