As COVID-19 impacts legacy businesses, Disney bolsters its direct-to-consumer play

New Ideas in MarketingEssential news for marketers, summarised by YouGov
August 06, 2020, 1:06 PM UTC

The international conglomerate is shutting down 20 of its traditional channels, mostly in APAC and EMEA regions.

With rapidly shifting consumer preferences impacting legacy businesses amid COVID-19, Disney plans to shift investments into direct-to-consumer units like Disney+, Hulu, and ESPN. In a recent post-results analyst call, Disney shared that its subscriber number across new platforms has crossed 100 million worldwide.

Disney has announced international expansion plans for Disney+ this year. The expansion includes Nordics, Belgium, Luxembourg, Portugal, and Latin America. The company is also launching an international direct-to-consumer general entertainment offering under the Star brand in 2021.

On costs, Disney has announced a $5 billion impairment while transitioning and improving its focus towards direct-to-home. The pivot will only partially offset losses, with Q2 2020 revenue down 42% to $11.7 billion compared to $20.2 billion last year.

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