Disney Goes Digital

When it comes to leveraging digital technology, few companies are as imaginative as Disney. Here is a look at how Disney continues to transform the business in new and exciting ways

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Disney Goes Digital

Though often described as the most magical place on earth, Disney world could also be described as one of the most innovative places on earth. In addition to revolutionizing theme park operations through the use of behavioral data and advanced analytics, they’re also pioneers of cutting-edge experiential and media technology such as VR, 4D viewing systems, over the top (OTT) services and IoT. 

However, the Disney enterprise covers more than just its theme parks: it also encompasses well over a hundred assets ranging from streaming services (i.e. Disney+, Hulu), movie studies (i.e. Marvel, Lucasfilm), commercial real estate holdings, cruise lines and so much more.

Though many if not most of its lines of business were especially vulnerable to the effects of the pandemic (i.e. entertainment, travel, retail, etc.), Disney still generated 65.39 billion U.S. dollars in 2020, just 6% less than in 2019. 

Though much of Disney’s success can be attributed to its unparalleled storytelling capabilities, both onscreen and in-person, its savvy use of technology cannot be ignored. Instead of using technology in a traditional transactional sense, Disney employs digital technology as an instrument of engagement and customer interaction. In addition, for those organizations who think automation begins and ends in the back office, think again. 

As former Disney CEO, Bob Iger, explained a few years back, “our strategic priorities include utilizing the latest technologies and platforms to reach more people and to enhance the relationship we have with our customers.” Disney’s story proves there is so much more digital technology and automation tools can bring to the table. 



Delighting the Digital Customer

Disney’s most high profile digital product is its streaming service, Disney+. Since its launch in late 2019, Disney’s streaming service, Disney+ has amassed over 118 subscribers and expects to grow to 260 million subscribers by 2024. 

In the wake of the global pandemic and the success of its streaming platform, Disney is looking to expand its digital footprint. To start, it plans to close 20% of its 300 retail stores around the globe and shift its attention to e-commerce. As the company explained in a recent press release, the end goal is to build “a more seamless, personalized and franchise-focused ecommerce experience through its shop Disney platform which will be complemented by greater integration with Disney Parks apps and social media platforms.”

 

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Ad Business Optimization

In March of 2021, Disney unveiled its ambitious plan to build a new unified digital addressable platform and, in the process, automate more than half of its sales business. As Disney explained on its corporate site, “The Disney Platform is a combined set of data, technology and creative capabilities that empowers advertisers to buy once and deliver everywhere, addressing the market’s needs for an automated and fully addressable future.” 

In other words, it will allow advertisers to purchase and manage ad buys for the entire Disney portfolio (across linear, CTV and digital video). This in turn will enable Disney and its advertisers to leverage data from across the entire Disney customer base, enabling the delivery of advanced customer insights and analytics. Or, in marketing speak, accelerate the shift from programmatic advertising to automated addressable advertising. 

In fact, by the end of the year, Disney said they expect automated revenue to increase by over 80% this year alone.

As for automated programmatic marketing, Disney also announced the launch of DRAX, a programmatic exchange that will:

  • Enable biddable deals to compete alongside direct-sold and programmatic-guaranteed sales, instead of continuing to operate as a traditional waterfall
  • Provide always-on inventory access, where DSPs will now have the ability to see all potential inventory, not just impressions that historically have made it to the auction 
  • Reduce latency, giving partners more time to surface their bids and respond accordingly


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