The Disney Company: Digitally Transforming Entertainment Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

The Disney Company: Digitally Transforming Entertainment Case Solution

Industry Overview

Companies that own content and lease intellectual property, as well as sell media through television and movies, make up the entertainment media industry. In order to stay competitive in this market, businesses must constantly adjust their content and delivery to the preferences of their customers. According to the industry consumers have been shifting away from cable television and into over-the-top (OTT) subscription platforms in recent years. Companies have been looking at new ways to widen their sales networks to compensate for this transition and the lack of subscribers across the market. Companies that are expanded internationally and produce globally popular content, and innovate with emerging online trends are the most likely to succeed in the long run.

Across its diverse business lines, Disney competes with a variety of media conglomerates. Time Warner, Sony, Viacom, and Netflix are the company's biggest studio entertainment competitors.Sports channels from Sky, CBS, Eurosport, and Comcast's NBCUniversal are included in the Media networks section. Universal Studios, Cedar Fair, Six Flags Entertainment, and Comcast are among the theme park's competitors. DC, Six Flags, Hasbro, and Mattel Inc. participate in the Consumer Products and Interactive Media market.

The Disney has established itself as per the market leader in the television industry, with the highest sales market share of all rivals. Disney generated $52.465 billion in sales last year, accounting for 31.82 percent of the overall revenue generated by its ten nearest rivals combined.In its key market divisions, Disney is a pioneer and a king. ESPN, ABC, and Disney Channels all have exclusive programming that can't be licensed or broadcast by other media outlets. Because of the strength and exclusivity of this content, Disney is able to benefit from sponsorship and affiliate payments at a higher rate than their rivals.Many of the company's business divisions are linked together, allowing audiences to interact with the same characters through television, movies, consumer goods, theme parks, and computer games. One of Disney's most valuable properties is its market identity, which continues to be a household name around the world.

Competitive Landscape

Disney is the world’ largest company of entertainment and amusement. It has a lucrative product line and consumes the large market place. Disney is considered for its mainly animated films and children’s entertainment park. It has the market capitalization of $178 Billion, the overall sales 454 billion and above than 2 lac employees. It has the high market consideration and coherently faces the competitors mainly; Time Warner Inc., Fox, CBS, Comcast and Sony. Time Warner is an entertainment company, founded in USA in 1985 with its headquarters in New York, which deals in animated movies, entertainment programs for the children on the Home box office. It is in among 100 companies and direct competitor of Disney. Fox is another entertainment company with its market capitalization of $10.7 billion and top competitor of Disney. In the early times, it was most connected cable in the USA and most dominant in entertainment industry.CBS is another top rival in the entertainment industry with market capitalization of 29 Billion and more than 15000 of employees in the company. It is digitally transformed and operates in the digital media and television. According to the annual report of Disney reported in 2018 about the company’s success in the digitalization transformation. The recent times, mainly reported that the competitors of the company has risen and the taken the competitive advantage in the in the industry. The profit of Disney reflected because of the rise of its rivals and the company faced the high competition in the market.

The product differentiation and digitally sound transformation made the company again rise in the industry and taking the intensive growth. The updated market strategy and product differentiation made the company to expand its market and take the competitive edge. The research and development department of Walt Disney, started the continuous research and which aid the uniqueness in the product and entertainment movies. The intensive growth strategies and market development strategies once again led the company to increase its profit and manage rivals in the industry. The company main focused in bringing the realistic content and increase the level of entertainment for the views. Moreover, the theme parks and the amusement parks were reorganized to attract the potential customers.

In US, when it comes to entertainment and amusement, the priority of people mostly on Disney and it is the top-notch in eth country. The arrivals of new animated movies like Marvel and others gave the extra perks to the company and it increased the revenue in 2020. The annual report of 2020 showed the 65.61 billion of revenue which was lower than 2019(69.61) but the company had a good performance as compared to its previous years.

Subtitles on Netflix, Amazon, Hulu and Disney Plus: who does it best?

Subtitles are the commentary or atext which is presented on the bottom of the screen or top in a movie to make the people understand of different regions. Disney engaged 10 million customers when it launched the international campaign and included the subtitles. The subtitles are the main source of engaging the international viewers. It is the addition of by the different countries languages different languages in the movie and showing in the different countries. This digital transformation gives the entertainment company a hype and increased the company’s value. On the contrary, the high competition happened in the industry and the high pace started after the invention of Netflix and other rivals. The Amazon, Hulu and Disney have the high competition in the digital transformation.

Here is a list of companies and their subscribers in the digitization process of subtitles.

Netflix: 158 million subscribers and 60.6 in US
Hulu: 28.5 million subscribers
HBO: 34 million subscribers
CBS: 3.5 million subscribers
ESPN: 4 million subscribers
DAZN: 8 million subscribers

Disney got the high subscribers in the entertainment industry after the streaming and the startup of subtitles but there were some issues raised in the company when the rivals like Netflix, Hulu started the best and highly digital transformation. They increased the number of languishes and sold their shows to the worldwide and captured the high market and got the competitive edge in the industry. Although, the service of Disney was good but it had some less features and limited languages in subtitles which led the company to step behind in the pace of competition. The founders and the management team noticed that the reduction in rating and viewers involvement. The R&D department analyzed the market consideration and the digital transformation from the competitor’s side and compared the service of the company by the industry analysis.

The urgent meetings were scheduled along with the BODs and the lacking was founded in it. The main thing which they analyzed that the digital transformation in subtitles and screaming were higher of Netflix and Hulu and they were providing the fast service to the viewers. Moreover, the flexibility and additional options led those companies to stay ahead in the modern world and increasing the market capitalization. Disney was behind it the subtitles because it had limited services and languages which led the company to have limited access in the world. However, the subtitles are the main source of giving the value to the different viewers and giving a platform to increase the language and choice to the viewer to watch a movie according to its choice.

In, Jan 2021, Disney found the proposed the solutions by the strategies of its rivals and compared its transformation in subtitles. They found that other companies were giving better customization in size, fonts and color in subtitles to the viewers.

Netflix

Netflix has a great service of subtitles and proficient customization strategy of subtitles and providing its services to almost all over the world. It has high customer demand because of its intensive services and classification in features. The font size, color and the different languages are the choice for the viewers. Subtitles are according to the movie and the features are customized over it manually.The new series of The Queen’s gambit let the viewer to change the features according to its choice. Moreover the screen display and colors are in higher quality rather than other services.

Netflix has a higher customer demand because of quality services and moving its operation higher in digitalization. Although, there were some mismatch in subtitles and voice which was immediate controlled by the operations department and the inconvenience was maintained promptly. The service of Netflix is highly appreciated by its end users and they preferred it over differententrainment movies. Moreover, there is an access options of the account to other user which gave the extra hype to the company and it ranked higher in the relevant industry.

Amazon

Amazon is the new player in the entertainment market which provides live streaming and facility of subtitles all over the world. It has a good facility of subtitles to the viewers and allow them to change the features according to their choice. The viewers are allowed to make certain changes the HD quality in the movies. Different market strategies were implemented in order to make the quality higher. The service is quite expensive but extensively digitalized. The company provides the other services along with it. In the initial stage, it used to provide services in limited regions but after it, the market penetration was done and it brought its services to worldwide. The customers of Amazon are highly satisfied because they get what they want........................

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The Disney Company: Digitally Transforming Entertainment Harvard Case Solution & Analysis