#4 Netflix and Disney+
Jim Barksdale once said that the only way to make money in business is to bundle or unbundle. Today we take a look at how Netflix and Disney use bundling as a business strategy.
Netflix helped unbundle TV, but created a bundle of its own. Its bundle includes shows Netflix produces, the ones it buys, and the shows that are rented from traditional networks. For Netflix, subscription to its bundle is the main business model and the sole driver of revenue.
On the surface, Disney+ seems similar to Netflix. You can pay a monthly subscription price and get access to its TV shows, albeit only the shows produced or owned by Disney. While both compete for consumer attention, Disney+ is more of a direct-to-consumer touchpoint for the whole Disney corporation rather than a big revenue driver. That's why Disney can price their offering cheaper, and provide it as a bundle with Hulu and ESPN+, also Disney businesses.
With its subscription bundle, Disney's strategy is to grow a direct relationship with consumers that might benefit other Disney businesses. Disney+ subscribers might be the first one to go to theaters when a new Disney movie comes up, take a Disney Cruise during a vacation, buy their merchandise, or go to Disney theme parks.
While on the surface the two bundles seem similar, their business objective is different.
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