Why Disney’s distribution model might be the most interesting in media right now

Really enjoyed this fascinating interview, where we discussed how Disney is expanding globally — what’s driving that growth, how they manage AdTech to compete with social video, and how they’re evolving into a Super Aggregator of their own services with the launch of ESPN’s long-awaited DTC app, just called: ESPN!

Hot take: it’ll be bundled into Disney+!

I’ve always wondered why so many broadcasters and massive TV companies — with some of the most iconic brands in television — launch “new” services that are essentially just the same as the old ones, moved online, with a new name. Why!?

As Rita said: TV is thriving — and linear is a big part of that. Disney is seeing growth across both linear and digital, as you’d expect. It’ll be interesting to see whether they spin off their broadcast services like others have, but I doubt it. With operations across regions like LATAM and Europe, broadcast remains a big part of the business.

To be clear, that's my opinion not what Rita said! Streaming services are bundling. Why?Because it’s stickier, gives consumers more reasons to subscribe, and helps with churn — a huge challenge for streamers. Disney now has a strong base of subscribers they can upsell, and as the traditional US pay-TV model continues its systemic decline, bundling is key to creating new distribution options. There’s so much in the full interview

For me what is also interesting is the recent announcement for ITV and Disney to be part of this super aggregation. Hot on the heels of Netflix and TF1, you can bet your bottom dollar more of this collaborations will be announcement soon. It's all about making these services as sticky as possible.

‍