In streaming wars, Disney reaches beyond kids and families

Disney has told investors it can hook 60 million to 90 million customers within about five years as it competes for customers in a crowded streaming market dominated by Netflix Inc. (AFP)
Updated 12 November 2019

In streaming wars, Disney reaches beyond kids and families

  • Disney’s marketing force is reaching beyond its traditional family audience to send a message that its $7-a-month subscription service Disney+ offers something for all ages

LOS ANGELES: During commercial breaks in a broadcast of World Wrestling Entertainment’s WWE SmackDown, fans were shown ads for Walt Disney Co’s new streaming service, Disney+. So were “Monday Night Football” viewers and video gamers watching Twitch.
“Try to keep up,” said Captain Marvel in one ad after a series of fast-paced clips from “Star Wars,” “The Simpsons,” “The Avengers” and other Disney-owned hits from outside of its deep catalogue of children’s classics.
Disney’s marketing force is reaching beyond its traditional family audience to send a message that its $7-a-month subscription service Disney+ offers something for all ages. The service debuted on Tuesday in the United States, Canada and The Netherlands.
“It’s incumbent upon us to market it the right way to emphasize the fact that it’s not just for kids,” Disney executive Kevin Mayer said during a briefing at the company’s Burbank, California, headquarters. “It’s all family friendly, but everyone can enjoy this product.”
Disney has told investors it can hook 60 million to 90 million customers within about five years as it competes for customers in a crowded streaming market dominated by Netflix Inc. 
Signing up adults who do not have children at home is part of that plan.
Consumers may not realize that after a series of acquisitions Disney is much more than classics like “Cinderella” and “Mary Poppins” that charmed generations of families. The company now owns the celebrated “Star Wars” movie franchise; Iron Man, the Hulk and dozens of other Marvel superheroes; “Toy Story” animation house Pixar, and nature programming channel National Geographic.
Previously released movies and TV series from all of those brands, plus 30 seasons of “The Simpsons,” are available on Disney+ alongside decades of Disney’s family-centric offerings.
Disney+ also offers new programming from those brands.
To raise awareness, the company is promoting Disney+ during sports and primetime TV telecasts to get in front of what Hollywood calls the four quadrants of viewers: male, female, young and old.
“We’re unmatched in quality and appeal across our four-quadrant audience spanning a variety of genres, formats and arenas, and will continue to build on that year after year,” said Ricky Strauss, president of content and marketing for Disney+.
In addition to the wrestling, football and gaming contests, ads ran during the World Series and the ABC News late-night program “Nightline,” and on social media networks.
Early testing in The Netherlands, where Disney offered a free two-month trial of Disney+, attracted a “very large and diverse audience,” said Mayer, who runs Disney’s direct-to-consumer and international unit.
“Marvel’s Agents of SHIELD,” a series aimed at 18- to 49-year olds, ranked as the most-watched piece of content, Mayer said. Next was tween-oriented show “The Suite Life of Zack & Cody” followed by “Disney’s Mickey Mouse Clubhouse,” a cartoon for young children.
“Our hypothesis was we will have a lot of different types of viewership, that it’s not going to be centered among any one of our brands,” Mayer said. “It’s quite a nice confirmation of what we want accomplished.”
The initial response in The Netherlands has cheered industry analysts.
“They have some surprising and encouraging signs about this potential that Disney+ is not just kids and family,” Forrester analyst Jim Nail said.
But unlike Netflix, Disney+ limits how far its programming will go to attract older viewers. To keep it family friendly, the service will not have any R-rated movies or TV shows designated TV-MA for mature audiences.
Programming considered too adult for Disney+ may stream on Hulu, which Disney also owns. That will include FX series such as “American Horror Story” and “Fargo” and possibly movies starring Deadpool, a Marvel character known for foul-mouthed humor, when rights become available.
“There are boundaries to what we’ll put on Disney+,” Mayer said. “’Deadpool’ is definitely not for Disney+.”


BT warns UK that banning Huawei too fast could cause outages

Updated 13 July 2020

BT warns UK that banning Huawei too fast could cause outages

  • Prime Minister Boris Johnson is due to decide this week whether to impose tougher restrictions on Huawei
  • British PM in January granted Huawei a limited role in the 5G network

LONDON: BT CEO Philip Jansen urged the British government on Monday not to move too fast to ban China’s Huawei from the 5G network, cautioning that there could be outages and even security issues if it did.
Prime Minister Boris Johnson is due to decide this week whether to impose tougher restrictions on Huawei, after intense pressure from the United States to ban the Chinese telecoms behemoth from Western 5G networks.
Johnson in January defied President Donald Trump and granted Huawei a limited role in the 5G network, but the perception that China did not tell the whole truth over the coronavirus crisis and a row over Hong Kong has changed the mood in London.
“If you are to try not to have Huawei at all, ideally we would want seven years and we could probably do it in five,” Jansen told BBC radio.
Asked what the risks would be if telecoms operators were told to do it in less than five years, Jansen said: “We need to make sure that any change of direction does not lead to more risk in the short term.”
“If we get to a situation where things need to go very, very fast, then you are into a situation where potentially service for 24 million BT Group mobile customers is put into question — outages,” he said.
In what some have compared to the Cold War antagonism with the Soviet Union, the United States is worried that 5G dominance is a milestone toward Chinese technological supremacy that could define the geopolitics of the 21st century.
The United States says Huawei is an agent of the Chinese Communist State and cannot be trusted.
Huawei, the world’s biggest producer of telecoms equipment, has said the United States wants to frustrate its growth because no US company could offer the same range of technology at a competitive price.