This is the Final Project Paper for the Intrapreneurial Business Proposal for Disney Plus.

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Intrapreneurial Business Proposal
Disney+/Direct-to-Consumer & International
Tiffany Cora
Full Sail University
Project & Portfolio III: Marketing Online
January 30, 2021

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Table of Contents
Section 1: Introduction page 3
Section 2: External & Internal Business Environment page 3
Section 3: Strategic Scanning page 5
Section 4: Solving a Need in the Market page 5
Section 5: Implementing Innovation page 7
Section 6: Conclusion page 10
Section 7: References page 11

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This Intrapreneurial business proposal has been created for The Walt Disney
Company’s subsidiary company - Disney Plus. The proposal will review the external and
internal of the business environment, provide a strategic scanning of the business, a
solution to the problem within the marketplace and how we plan to implement the
solution to better the company.
The Walt Disney Company was created in 1923 by Walt Disney. The Disney brand
reaches audiences of all ages through various media outlets and is consistently growing within
the marketplace. By adapting a simple strategy Disney has been able to differentiate
themselves within a saturated market. (A. Shnoor, 2020) Robert Iger is the Executive Chairman
and Chairman of the board, while Bob Chapek is the Executive Officer of The Walt Disney
Company. (Walt Disney Leaders, 2020). The Walt Disney Company is a corporation that is
publicly traded on the stock market.
The Direct-to-consumer & International (DTCI) Technology group plays a central role
within The Walt Disney Company. (DAPs, 2020) This subsidiary is responsible for the
development and consumer experience of the brands digital products, data platforms as well as
digital and linear media distribution. Rebecca Campbell is the Chairman for DTCI and oversees
the company’s streaming business globally. (Walt Disney Leaders, 2020). The Direct-to-
Consumer & International (DTCI) was created to provide consumers worldwide entertainment
and sports content with more personalization and convenience. This segment includes
streaming businesses and creates digital products that connects Disney’s content and supports
the company’s business around the world. (dtcimedia.com)

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Disney+ is a streaming provider that is home to movies and shows from Disney, Pixar,
Marvel, Star Wars, National Geographic and more. It is a product that is part of the Direct-to-
Consumer International (DTCI) segment of The Walt Disney Company. The service offers
commercial-free programming with original feature-length films, documentaries, live-action and
animated series. (Disney+) The direct-to-consumer market is becoming a tighter space with new
services launching all the time. For example, HBO Max is a new direct-to-consumer video
service from AT&T’s WarnerMedia that is streaming 10,000 hours of content that launched in
2020. This new platform has already impacted Netflix who lost one of the most popular shows it
was streaming “Friends” last year (N. Perry, 2020). The market is becoming more cutthroat with
content and consumers are having to choose which platforms they want to subscribe to. With
streaming services being the rage, consumers aren’t locked into packages anymore and this
allows customers to sign up and cancel easier. This is a concern for forecasting new
subscriptions and needing to maintain a current subscription base.
We at Disney plan to move more aggressively with Disney+ price points and content.
Disney + has a roster of brands ranging from Disney, Pixar, Marvel, Star Wars and National
Geographic to drive the content the platform. These all play into the consumer experience and
watchability. With content being the driving force of subscriptions, Disney+ has a lot to offer the
marketplace vs its competitors. (C. Littleton, 2019). The Disney+ platform fulfills the consumer
nostalgia and allows the brand to become more immersed into daily life. (S. Whitten, 2019). By
doing this we gain a tighter hold within the marketplace.
With the current climate of the pandemic the streaming platform was able to beat
subscription goals that were originally set for five years. This indicates the quick adoption of the
new platform. (T. Mohamed). Consumers appear to be willing to pay for several streaming

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services within the marketplace and platforms that provide valuable content. (G. Del Vecchio)
With mature competitors such as Netflix and Amazon, Disney+ has to stay focused on how we
continue to undercut the competitors in price and provide an edge with original content. As the
pandemic continues to cripple the cinemas worldwide the Disney+ platform has to continue to
change its role within the marketplace. The platform has been early releasing major films like
Frozen 2, Onward, and Hamilton to the platform. In September of 2020 we released the live-
action remake of Mulan for a $30 add on but then on Christmas Day debuted the Pixar
animated film Soul at no extra charge. (J. Solsman, M. Sorrentino, 2020) As we all navigate this
new normal the opportunities for streaming is opening up each day. Major changes are still to
come as we figure out what is the best way to provide block buster films to consumers. This is
something that is still new to the marketplace.
Disney+ currently has a demographic that ranges in adults 18-29 years of age and
shows an increase in adults 30-44 years of age. (Statista). Consumers are wanting to re-live
their childhood and share it with others. By offering hundreds of titles ranging from classic
movies and TV shows to the hottest trends like Marvel and Star Wars, the platform feeds the
nostalgia consumers are looking for. (S. Whitten, 2019) The platform is benefiting greatly from
the prolonged effects of the pandemic. As the country remains in limbo, families are enjoying in-
home entertainment options. Due to this, Disney’s market value grew $21 billion after the
subscriber count hit 60 million. (T. Mohamed, 2020) The platform is still currently rolling out
internationally and subscriptions will continue to increase. The price point of Disney+ was low
balled to undercut its competitors. If the strategy of Disney’s theme parks is used as a guide,
then we can expect the platform to raise its pricing once customers are hooked and new content
is consistent. (G. Del Vecchio, 2020)

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The Direct-to-Consumer & International (DTCI) lead to the acquisitions of Marvel
Entertainment, Lucas Film & BAMTech. These acquisitions helped lead to the launch of
Disney+. Disney+ has a bundle option with Hulu and ESPN+. These network acquisitions allow
consumers more content as a subscriber to the platform. (S. Whitten,2019) Disney+ is currently
underpriced in comparison to competitors. Netflix has continued to increase their subscription
pricing while Disney+ has a bundle package that includes other subscription-based platforms
which helps increase content. With technology becoming more available to younger consumers,
they are able to control what they watch in their free time. With Disney+ having family-friendly
content is a benefit as parents can feel comfortable about the content their children are exposed
to.
A major threat that Disney+ faces is with their competitors. For instance, households
who have had subscriptions to Netflix from the beginning that have had no issues may not have
enough reason to switch platforms. Families tend to split costs of subscriptions with other users
to keep costs down. Disney+ competitors have also been in the marketplace longer. The top 3
competitors are Netflix which has 182.8 million subscribers (E. Lee, 2020), Amazon which has
150 million subscribers (J. Stoll, 2021) and HBO Max which as 36.8 million subscribers.
(T. Spangler, C. Littleton, 2020)
Launching platforms in other regions early can increase subscriptions and releasing
anticipated titles early can keep consumers in the long run. Making content accessibleat all times
for consumers is another way to keep subscribers.Keeping price points lower and having bundles
allows an edge over competitors for the platform. The Walt Disney Company is an industry leader
within the entertainment market. They are a very diverse company that has a strong brand. For
Disney storytelling is the key component within their marketing. This story telling approach is what

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separates them from their competitors and allows them to connect with the consumer. (A.
Schnoor).
Our team at Disney Streaming Services has been working in the video industry since
2002. The team acquired Michael Paull who worked as Amazon’s VP of digital video helped to
expand the department by doubling our headcount in our New York location. Michael brought in
a key player Jerrell Jimerson as the SVP of product officer. Jimerson is a 30-year-old tech
veteran who worked at companies such as iHeartRadio, PayPal, Yahoo and Apple. The
department recruits’ individuals with both tech and media experience. The entire design is to
bring the brand front and center and allow the subscribers find what they want to watch. It’s
about building excitement and not overwhelming the consumer. (T. Spangler, 2019)
The mission of the Walt Disney Company is to entertain, inform & inspire people around
the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative
minds & innovate technologies that make ours the world’s premier entertainment company.
(Walt Disney). The Walt Disney company culture is set on values, traditions and customs that
influence their employees. This culture ensures that its employees align with its target audience.
The success of the culture reflects in the success of entire organization that aims for leadership.
The characteristics emphasis on innovation, decency, quality, community, storytelling and
optimism. All of the traits promote a community and because of this employee’s ensure a high-
quality output of products which motivates workers to maintain strategic success. (A. Williams,
2019).
The Walt Disney Company is very transparent. The company places its social
responsibility on their website its breakdown its social impact, environmental sustainability, its

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conservations, supply chain and content and products. A yearly report is even obtainable off the
site for anyone to read. (The Walt Disney Company). Trends within the streaming industry are
becoming heated up. Disney Plus has more competition entering into the marketplace within
2021. As each platform fight for subscribers the trend for each platform is to attempt is original
content, and to provide an answer for the emerging on-demand viewing for theatrical films on
platforms as the pandemic continues to rage a havoc on cinemas. (B. Owen, 2021). The Walt
Disney Brand is known for its nostalgia and Disney Plus offers just that. The price is less than
half the cost of others sources and offers Disney lovers a chance to indulge without the cost of a
ticket. The platform has unlocked its vault and allows every adult the chance to relive their
childhood. (I. Thornley, 2019).
Most of the consumers reviews are positive in-regards to the platform in general. They
boost about it being amazing, having great movies, being in the right price point and perfect for
families. These reviews take up to 89% percent of the reviews found on Amazon. The other
11% discuss disappointment with content and technical difficulties. (Amazon.com) The content
disappointment is towards the feeling of lack of content for adults. In Regard to competition such
as HBO Max 82% of the consumers give the platform a 5-star review for content and
experience. The other 18% complain about the process of login verification, poor parental
controls and not working correctly on all devices. (Amazon.com)
Based on these reviews’ consumers are wanting more content from the platform. Disney
has already announced that it will be releasing new content to address these concerns. In 2021
the platform will double its content including dozens of shows, movies and even R-Rated
content. This news was released at investors day. (E. Garbutt, 2021). This is highest pain point
among consumers. The recommendation that I am making for the Disney Plus platform is to
provide its subscribers a theatrical movie pass. With Cinemas still taking a hit due to the

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pandemic digital streaming companies need to offer consumers options to watch blockbuster
films. This idea benefits Disney Plus because it allows its subscribers the additional content they
seek. (J. Alexander, 2020)
When Disney released Mulan in September 2020 it was at a fee of $30. Then in
December of 2020 the film was released to the platform at no additional charge. Even though
the movie drove in a 68% increase in new downloads it was only one-tenth of the signups that
Hamilton produced when released at no charge. (B. Katz, 2020). This shows that consumers
want access that is already included in their subscriptions or something that is cheaper than a
$30 per movie fee. I propose instead of a per movie fee that we offer a monthly movie package
that is $19.99 a month for non-Disney Plus subscribers or a cheaper rate of an additional $10 a
month get unlimited theatrical release access. This provides consumers the option to access
theatrical releases all month long for a one-time fee. This option provides options to consumers
who are looking for more options.
This process could potentially save the company over a million dollars of lost revenue.
The Disney Plus platform has already 86.8 million subscribers worldwide. (D. Hayes, 2020) 11%
of subscribers have left the platform due to limited content per reviews on amazon.com.
(Amazon.com).
In order for this idea to work we would have to work out a contract with cinemas in order
to keep the relationship healthy. This might mean we will have to do a dual release both in
theaters and digitally streaming. This will ensure a healthy relationship for both enterprises. The
marketing would have to be geared towards individuals who aren’t comfortable going out to view
a movie, but they can from the safety and comfort of their own home. The timeline to get this
taken care of would about 6 months depending on how long negotiations take with contracts for

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theatrical releases. The resources that would be needed are a marketing and strategy team in
order to launch this new product to the world. As well as Disney Plus design team to create the
portion of the platform that will host all of the movies. The indicators for the success would be
determined month of month subscriptions vs cancelations as well as consumer feedback.
Now is the optimal time to take this risk as the pandemic is continuing to rage on and
restructure our society. We can gain a huge foot hold within the streaming industry and shape
how films will be accessed for years to come. Having a mentor from a top executive who has
the experience both within the company and industry is best. Creating progress reports on the
project would be the best way to update my mentor with how the project is going and implement
and suggestions that are made. It isn’t necessary to implant every suggestion but as a mentor
they are there to help guide you onto the correct path. If peers or a management don’t want to
implement such an idea, I believe providing facts and having a discussion about the industry
and we need to do to improve and shape the world is the best possible way.
With top acquisitions and a successful first year within the streaming marketing place,
Disney+ will sure to continue to take risks and seize opportunities. The industry has shown its
needing of more options for content and flexibility within streaming platforms. The Disney
nostalgia and strong consumer base of the Disney+ platforms proves that it will continue its
growth and head the way into the new territory the industry finds itself.

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S. Whitten (2019, August 6) 14 years, 4 acquisitions, 1 Bob Iger: How Disney’s CEO revitalized
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S. Whitten (2019, August 6) 14 years, 4 acquisitions, 1 Bob Iger: How Disney’s CEO revitalized
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