Netflix Stock Losing Ground to Disney, Possible Shift in Trend in Near Future
Netflix Looks to Disney for Franchise-Building Strategies
In the ever-evolving world of entertainment, streaming giant Netflix is making moves to emulate the success of media titan Walt Disney in building profitable and beloved franchises.
Recently, Netflix released a prequel, "Army of Thieves," centered on a supporting character from the initial "Army of the Dead" movie, signaling its ambition to establish its own cinematic universes, similar to Disney's Marvel and Star Wars properties.
Netflix's strategy mirrors Disney's, which revolves around a simple premise: good characters trying to overcome bad ones. From Snow White and the Seven Dwarfs to the X-Men, Disney's films and TV shows have captivated audiences for decades.
Disney's success stems not only from its strong narratives but also from integrating storytelling into every element of its offerings—from theme parks to merchandise—ensuring consistent and engaging experiences that build emotional connections with audiences.
One area where Netflix can learn from Disney is immersive storytelling beyond screen content. Disney revolutionized the theme park experience by hiring creative talents to design attractions as living stories, ensuring every detail—from cast costumes to food and merchandise—immerses guests fully into the narrative world. Netflix could expand its franchises beyond streaming shows and movies into interactive experiences, merchandise, or themed environments to deepen brand loyalty.
Another key lesson is strategic expansion and integration. Disney’s growth strategy involves expanding existing assets thoughtfully, such as refurbishing theme park spaces to introduce popular franchises cost-effectively, avoiding prohibitively expensive new park builds. Similarly, Netflix could develop franchises by reinvigorating or reimagining existing content and platforms rather than always chasing costly new intellectual property (IP).
Cross-platform synergies and bundling are another area where Netflix could follow Disney's lead. Disney’s integration of Hulu into Disney+ to present a “unified app experience” encompassing entertainment, sports, and news illustrates the power of consolidation and creating a comprehensive entertainment ecosystem. Netflix could explore bundling or integrating its offerings with other content or services to increase subscriber value and engagement.
Lastly, Disney’s approach combines creativity with financial discipline by managing costs while investing heavily in theme parks, cruise lines, and streaming to diversify revenue. Netflix might benefit from balancing investment in content with strategic capital deployment to sustain growth and profitability.
With its strategic moves, Netflix has the potential to create formidable and very profitable franchises that could challenge Walt Disney. However, it has a smaller collection of character-driven IP compared to Disney, which may present a challenge in the quest for franchise-building success.
[1] Disney’s Holistic Approach to Storytelling [2] Disney’s Integrated Approach to Content and Experience [3] Disney’s Financial Discipline and Creative Vision [4] Disney’s Streaming Strategy [5] Disney’s Theme Park Strategy
- In the realm of entertainment, Netflix could draw inspiration from Disney's holistic approach to storytelling, extending its cinematic universes beyond streaming shows and movies into interactive experiences, merchandise, or themed environments.
- To create a more comprehensive entertainment ecosystem, Netflix might follow Disney's integrated approach to content and experience by exploring bundling or integrating their offerings with other content or services.
- Similar to Disney's financial discipline and creative vision, Netflix could balance investment in content with strategic capital deployment to sustain growth and profitability.
- Netflix, like Disney, is making moves to emulate franchise-building strategies in the streaming market, following strategies such as reinvigorating or reimagining existing content and platforms.
- In the long run, Netflix's success in the stock-market could see significant growth if they can emulate Disney's theme park strategy, expanding existing assets thoughtfully and revolutionizing guest experiences.
