Disney Subscription Program? The Strategy Behind ‘Disney Prime’

Who am I to judge the princess and superhero fandoms cheering at this news, as I write this article wearing a Star Wars robe myself? As if all the fanatical sphere around the brand wasn’t enough, now Disney is investing in an Amazon Prime-style membership program.

What do you mean, one of the most loved brands in the world will offer exclusive discounts and advantages to seek more loyalty? According to The Wall Street Journal, “Disney Prime” is the nickname given by executives (and now by the market), as there’s no official name yet.

Well, of course, there is a sales plan behind subscription programs. And to better understand its benefits, I’ll take a look at what is behind Disney’s membership strategy.

Come with me to see why companies like Amazon and Disney offer promotions to their most loyal customers!

Benefits of a Subscription Program

The question here is: what would Disney gain from this? After all, the company has the most loved movies in the world, became a leader in streaming this year and has the most visited park in the world. Doesn’t it seem counterproductive to “buy the faithfulness of the faithful”?

Well, here are some of the direct benefits of subscription programs:

• Build customer loyalty
• Increase your loyal customer base
• Generate greater cash flow
• Collect more data about your consumer’s habits

Let’s look at these benefits through an example using a persona? Meet Rockert!

Rockert subscribes to Disney+ and is a Marvel collector. As soon as our persona discovers and subscribes to “Disney Prime”, they notice cheaper toys and other promotions such as tickets, resort stays, etc. Now instead of buying one toy a month, he buys two and a third as a gift, t-shirts for the kids and plans a trip to Orlando. 

You got the idea, right?

In addition to him forgetting about other streaming services or another superhero franchise, he consumes more Disney, and his friends and acquaintances realize the benefits of the subscription. 

Also, there’s another gold advantage behind it: as Rockert subscribed and gave Disney a lot of data as he interacts with Disney content and offers, Mickey Mouse’s company starts to become clever. It starts to understand, for example, that Rockert has children. And, with that, it can offer Iron Man school supplies in their ads.

Depending on the amount of Rockert’s consumption, Disney will not only generate more cash flow than before, but also profit in terms of sales volume.

So, what can we learn from Disney’s strategy?

Disney has been teaching us how to do business since 1923 and it would be no different now. In fact, loyalty has been going strong since the days of Walt and Roy, when service and delight were the main factors in the company’s success.

So, I look at a possible Disney subscription program with an optimistic eye.

After all, today, as the second largest media conglomerate and with the largest streaming service on the planet, Disney (and many other companies) shows that your brand must pursue growth, or it will be swallowed up.

Looking at the competition is a sign of humility! Be smart when analyzing the market, learn from your competitors and don’t be afraid to create.

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