Bob II Emerges
It's been a quiet few months for Bob II, aka Bob Chapek, CEO of the Walt Disney Company. No doubt needed after his dumpster fire of a summer, but he reemerged this past week at the Wall Street Journal's Tech Live Conference, where he spoke last Wednesday.
Sporting his now trademark beard, Chapek discussed the need for Disney to find ways to merge its parks and media content divisions, mainly using the Disney+ app. He stressed he wants to be more of an experience platform versus a content platform. Frankly, this makes sense, although he underestimates the amount of resources it will take to get Disney+ to the point where it can be useful to both park nuts and content crazies. I'm surprised that Comcast has yet to invest in doing the same. Their parks business does well, and Peacock could use some help, although they seem to be making some moves in that direction (more on that below.)
One particular aspect of Bob's talk that I liked was his reference to the battle of the streamers. As most of the CEOs have said, not all streamers will survive this battle, but I particularly liked this little nugget:
"Streaming is a critical mass business. Scale is really really important in order to thrive."
Now, most of you are probably thinking, well duh, thanks, Captain Obvious, but is it so obvious? How many of these companies dove into streaming just because Wall Street thought everyone just needed a service? For the most part, aren't all of them simply chasing Netflix? Chapek is absolutely right, but I would add one caveat. Yes, critical mass is essential, but it also needs to be done smartly. Take, for example, this past weekend. Disney released Hocus Pocus 2 on Disney+. According to Whip Media's TV Time report, it is apparently the most-watched film on streaming in 2022. Entertainment Strategy Guy has a great post (subscription required) on this and dives deep into the data. It's clear that this would have cleaned up at the box office had it been released in theaters, especially with the current competitive landscape. I understand the need to feed the streaming beast, but that is a ton of money left on the table. Critical mass is important but remember, there are other aspects of the business that are important to the overall brand. For Disney, the brand is life.
Another challenge is critical mass can also mean a firehouse of content to the point where no one knows what to watch because there is too much. Tim and I call this the "What to Watch" problem. You could spend money marketing a streaming TV show or movie until you're blue in the face, but that doesn't mean anyone is going is actually see it or that it's going to last in the cultural memory beyond last week (Remember Bird Box, anyone?) The audience needs to know where and when to find your content. Suppose Disney figures out a way to merge both parks and content onto Disney+ seamlessly. In that case, the critical mass of content has less of a chance of becoming a "throw anything at the wall and hope it sticks" strategy and more of a "seamless entertainment experience that is fun for families of all ages" success.
Only time will tell, but it does seem Bob Chapek realizes the challenge ahead. The other streamers better wake up to this reality as well before they become the service that is either swallowed by another conglomerate or shuttered altogether (looking at you, Comcast).
Peacock Struts (a little)
Speaking of Comcast, there was some interesting news on Monday regarding Peacock and that little channel that just loves Christmas. I speak, of course, of the Hallmark Channel. This week, this little deal was announced. Although the exact specifics of the deal were not released, this could be a boon for Peacock. Hallmark Channel is a BIG business for those who are not Christmas movie freaks or Danica McKellar fans. According to Nielsen, more than 80 million people watch a Hallmark Christmas movie for at least a few minutes during the holiday season. I'm not a big fan of these minutes watched metrics, but damn, that is a massive number for a linear cable movie. Peacock wisely seized on this opportunity. This is a move that showcases that execs are starting to think outside their little LA bubble and looking for content that might appeal to someone beyond their immediate lunch/cocktail party circuit.
In another win for Peacock this week, they snagged a prequel to the horror franchise Friday the 13th called Crystal Lake. Horror is often a big money maker, and although they won't be able to use Jason due to rights complications, this is still a beloved franchise. Let's hope they don't make the same mistakes another franchise did recently (rhymes with Shalloween.) Peacock is the also-ran of the streaming services, but with the Bravo hit shows returning home from a stint on Hulu as well as the Hallmark announcement, the numbers could begin moving in the right direction. All these moves showcase that the recently installed chief, Kelly Campbell, knows that some actions are required to get those sluggish subscriber numbers up despite Jeff Shell's claims to the contrary.
Pages from the Commonplace Book
I know that some of you are not religious, but most of you would agree that wisdom can be found in theological texts, no matter the tradition you follow. This week, we have some wisdom for a 14th Century monk, Thomas Kempis, from his masterwork, The Complete Imitation Of Christ:
From Book One: Advice Helpful to the Spiritual Life: Chapter 2: Of the Humility to Know Oneself:
"If you seen another person sinning publicly,
or committing some other grievous acts,
do not oblige yourself to consider yourself any better,
for you cannot tell how long you can stand perfectly upright. "
Whether one believes in sin or not, the message above is quite simple. Don't judge others harshly, for you have no idea when you might make your own mistake (which you will) and will not that judgment visited upon you.
Get The Founder’s Brew weekly to your inbox. Subscribe here!
