Disney+ Streaming Service Targeting a New Segment

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Table of Contents

Introduction
New Market Segment
Purpose of Marketing Communication
Marketing Message
Marketing Communication Tools
Recommendations
Conclusion
References

Introduction

In the present day, Disney+ may be regarded as one of the most successful streaming services that produce and provides large amounts of audio-visual content for almost everyone. Standing apart from its competitors, the platform combines classics and modernity creating an unprecedented quality of entertainment (Agnihotri & Bhattacharya, 2022). Using a four-quadrant approach, Disney+ aims to cover all major audience demographics (Tapp, 2022). However, according to customers’ analysis, its primary segment is White women and men aged 27-41, predominantly without children, will low or middle income, living in urban and suburban areas. They value the balance of the product’s quality and price, prefer affordable entertainment, and choose both classics and the latest trends.

New Market Segment

At the same time, to stay competitive, Disney+ should create and address new segments and subsegments. Thus, through the analysis of the primary segment, competitors’ strategies, and the population’s features, the company identified the most attractive new subsegment with great market potential. It is Black women and men, aged 27-41, predominantly families with two and more children, with middle income, and from urban and suburban areas. They are both committed to traditional values and respect new ideas and social equity at the same time. They are loyal to companies that afford quality products at the best price. However, due to a lack of time and money for cost-inefficient types of entertainment, they choose convenient, fast, high-quality, and affordable entertainment for all family members without leaving their homes to satisfy their basic needs.

Purpose of Marketing Communication

There are multiple reasons why a new subsegment should be addressed by Disney+. First of all, according to the latest reports, Black adults spend more time with media in comparison with representatives of other ethnicities, and it continues to grow under the influence of the pandemic (Grace, 2020). In addition, the purchasing power of the Black population is growing as well. At the same time, Blacks prefer convenient and affordable services – in other words, they choose a ready product with good quality and at an affordable price, and stay extremely loyal to companies that meet their expectations. In addition, several children in families influence both parents’ customer behavior and entertainment routine. As previously mentioned, this subsegment will choose Disney+ for an affordable price, convenient service, and content for everyone. Finally, addressing the Black population will substantially improve the platform’s reputation as concerning tolerance and equal human rights is essential nowadays.

Marketing Message

According to the current values of Disney+, the platform focuses on the streaming convenience provided by modern technologies, classic content, and the latest trends offered by modern franchises. In other words, it combines the traditional type of entertainment with the most convenient form of content distribution and well-known films, series, and shows with favorite universes’ brand-new content. At the same time, this value proposition is reliable concerning a new subsegment. Black families chose both familiar franchises and new releases for watching using modern ways of story distribution. However, in this statement, the company may add its value of diversity, inclusion, social support, tolerance, and equal human rights.

Considering the growing importance of diversity, inclusion, and equality issues, for Disney it is vital to focus on creating a new marketing message that will help to consider the needs of its audience. It will also contribute to the broadening of the target audience and the acquisition of new loyal clients. Thus, for a new subsegment, the marketing message will be the following: “Disney+ not only offers the largest collection of classic masterpieces and the newest releases combining traditional entertainment with modern technologies for all your family – it respects your identity, your heritage, and equality.”

Shifting to the given message will cultivate several positive outcomes. First, as stated previously, racial minorities respect brands considering their needs. It means that by introducing a new idea, Disney+ will affect this segment and can count for a significant increase in the number of loyal clients. Second, the establishment of a new, more tolerant, and inclusive marketing message will improve the brand’s reputation and demonstrate its attention to communities’ needs, which is vital in the modern business world. Finally, it will create the ground for new diversified and inclusive projects crucial for the development of the brand. For this reason, the use of a new message is justified by several factors.

Marketing Communication Tools

In general, the main strategy of the platform for the attraction of an identified subsegment is the creation of more Black-related and diversity-related audio-visual content along with the preservation of previous formats. It may include talk shows conducted by prominent Black influencers, conversations with influential Black musicians, athletes, actors, and businessmen, and films with Black or other non-White actors or directed by Blacks or non-Whites. People should feel that the company aims to satisfy their unique needs and value their differences. For this, particular promotion tools should be chosen, predominantly to inform potential subscribers about the company’s values. First of all, personal selling and direct marketing may be regarded as inappropriate tools. Both of them presuppose the platform’s direct interaction with potential clients. These tools cannot be used by an international platform with millions of subscribers all over the world, and a new subsegment is relatively big as well.

At the same time, general advertising and digital promotion, sponsorships, public relations, and sales promotion may be regarded as efficient marketing communication tools that may be used. At the same time, it is possible to distinguish advertising and sponsorship as the most efficient tools. As an efficient tool for the communication of ideas and the benefits of services and products used by both commercial and non-profit organizations, digital promotion and general advertising may help Disney+ articulate its message. For example, the platform may advertise new diversity-related content or the presentation of material related to its renewed values through mass media, social digital platforms, and traditional sources. The platform should be presented as the most efficient and affordable source of entertainment for children and adults. At the same time, advertising should be cautious concerning consumer targeting. For instance, in 2018, Netflix was accused of targeting potential customers based on their race and ethnicity (Iqbal, 2018). The platform prepared several variants of the same film’s posters and show materials with Black actors to Black social; media users even if these actors’ roles were insignificant. This practice may be regarded as inappropriate – non-White consumers prefer to be treated equally.

The articulation of the message is closely connected with its elements and the people whom it addresses and by whom it is spread. In the case of Disney+, the platform may demonstrate its commitment to newly identified values through interaction with people who are connected with them. For instance, the platform may sponsor Black athletes or human rights activists whose influence on the audience is undeniable. The brand might align close cooperation with numerous activist groups to consider their current needs and support their projects. It might also include involvement in important community incentives aimed at improvement of people’s lives and providing them with things they need. The given strategy will contribute to the generation of several vital benefits. First of all, this approach will help the company’s marketing message spread. Real actions will demonstrate that the brand not only makes proclamations but also engages in projects that might help to alter the situation. In addition, these activities show that it supports diversity and equality in all spheres of life attracting a new subsegment. It will improve their reputation and contribute to improved customer relations and the growth of their loyalty.

Recommendations

Thus, new subsegments that should be addressed by Disney+ are Black women and men, aged 27-41, predominantly with families, with middle income, from urban and suburban areas. First of all, minorities are underserved and poorly represented among the platform’s subscribers, however, their customer loyalty, growing purchasing power, and impact on almost all spheres of life should be considered. Black spend considerable amounts of time online looking for the most convenient and affordable types of entertainment. At the same time, the streaming service will be more popular among families for the provision of content for everyone available without leaving their homes. At the same time, addressing the Black population will improve the company’s reputation and allow it to position itself as tolerant and respecting equality and human rights. Thus, this aspect should be addressed in the platform’s updated marketing message to target a new subsegment.

Conclusion

In general, the platform should demonstrate that it values all people regardless of their nationalities and respects equal human rights. For this, it should create and provide more Black-related and diversity-related audio-visual content, including shows, series, and films, along with the preservation of previous formats. At the same time, consumers should be aware that the diverse population is involved in the creation and distribution of content through acting, directing, or scriptwriting. For the promotion of new materials and a new message’s articulation, advertising and sponsorship may be distinguished as the most efficient tools. The platform may advertise new diversity-related content or the presentation of material related to its renewed values through mass media, social digital platforms, and traditional sources being presented as the most efficient and affordable source of entertainment for children and adults as well. Finally, the platform may sponsor Black athletes or human rights activists whose influence on the audience is undeniable to spread its message and emphasize its values.

References

Agnihotri, A., & Bhattacharya, S. (2022). Disney: Restructuring for success with video streaming service Disney+. SAGE Publications: SAGE Business Cases Originals.

Grace, C. (2020). Multicultural consumers are streaming content more than ever as social distancing continues. Perspectives. Web.

Iqbal, N. (2018). Film fans see red over Netflix ‘targeted’ posters for black viewers. The Guardian. Web.

Tapp, T. (2022). Disney Plus: Everything you need to know about Disney’s subscription streaming service. NEXT TV. Web.

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