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Published in · 5 min read · Mar 13, 2023
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The Walt Disney Company is a multinational media and entertainment organization that coincides with Disney’s 100th anniversary this year. It is known for its unique cartoon characters and IP, which includes theme parks, movies, television networks and consumer products.
In recent years, digital media and technology have revolutionized the way organizations operate in the modern world. Companies like Disney have also been significantly impacted by this revolution, with new challenges emerging every day. This blog post will look at the challenges Disney faces as well as the new opportunities that arise when it comes to digital reform.
Opportunities:
- Increased Reach:
One of the significant benefits of digital media and technology is the ability to reach a broader audience. Disney may communicate with fans and advertise its products and services through social media platforms such as Facebook, Twitter, Instagram, and YouTube. Disney may also target certain demographics using social media, enhancing the effectiveness of its marketing efforts. Disney, for example, has utilised social media to advertise the debut of its latest movies and television shows, generating excitement among fans and increasing ticket sales.
- Enhanced Customer Experience:
Digital media and technology have allowed Disney to create a more immersive and personalized experiences for its customers. The company can use augmented and virtual reality to enhance the experience of theme park visitors. For example, the implementation of the MagicBand, which can collect valuable data about customers’ experience and used as parking tool, a room key, a payment card when visiting the Park. Disney’s streaming service, Disney+, offers viewers access to a vast library of Disney movies, TV shows, and original content from the comfort of their homes. The platform also allows users to create profiles, set preferences, and receive personalized recommendations based on their viewing history.
- Improved Operational Efficiency:
Digital media and technology can also help Disney streamline its operations and reduce costs. For example, the company can use data analytics to optimize its operations, such as predicting crowd flow and staffing levels at its theme parks. For the visitor, Walt Disney World has introduced the My Disney Experience app, which allows guests to plan their visits, make reservations, and access ride wait times and other information in real-time. This app can help Disney improve the customer experience and allocate its resources more efficiently. The use of RFID MagicBrand can also help Disney reduce paper waste and decrease its carbon footprint, promoting sustainability. In addition, the Disney Parks use RFID technology to track inventory levels and prevent overstocking, reducing waste and lowering costs.
- Increased Revenue:
Disney’s use of digital media and technology has opened up new revenue streams. Disney+ launched in 2019 shortly before the covid-19 outbreak has become a significant revenue generator for the company, with millions of subscribers worldwide. Disney Plus generated $5.2 billion revenue in 2021, an 85% increase year-on-year. It made up for the loss caused by the inability of the Disney parks to open during the prevalence of Covid-19. Additionally, the company can monetize its vast library of content through licensing and merchandising agreements, further increasing its revenue. For example, Disney’s acquisition of the Star Wars franchise has led to the creation of new movies, TV shows, and merchandise, generating billions of dollars in revenue.
Challenges:
- Increased Competition:
Other media and entertainment companies that have embraced digital media and technology face severe competition from Disney. Streaming services such as Netflix, Amazon Prime Video, and Hulu compete in the streaming industry with Disney+. Other theme parks and attractions, such as Universal Studios, compete physically with Disney’s venues. This increased rivalry may result in a decline in Disney’s market share and revenue, necessitating the company’s ongoing innovation and improvement of its services.
- Cybersecurity Threats:
Disney faces an increased risk of cybersecurity risks as it relies more on digital media and technology. The company’s systems and data must be protected from hacking, data breaches, and cyber attacks, which could harm its reputation and financial stability. Thousands of hacked Disney+ accounts are already for sale on hacker forums in 2019, only hours after Disney+ was released, underlining the need for stronger cybersecurity measures. This incident led to the initial accumulation of user distrust of the software and the loss of some potential users due to negative comments about the software on social media.
- Copyright Infringement:
Piracy has become a serious problem for Disney and other media firms as digital media has grown. Every year, illegal downloads and streaming of material cost the industry billions of dollars. For example, Disney lost more than $600 million to piracy on “Black Widow”. Disney must invest in technologies that detect and restrict unlawful access to its content in order to combat piracy.
Disney has already implemented anti-piracy measures, such as collaborating with internet service providers to prevent access to copy content. To keep ahead of the pirates, the company must continue to innovate in this area. Block chain and digital watermarking technologies, for example, open up new avenues for preventing piracy and protecting material.
Watch this video and find out how to visit the Disney Parks using digital services!
In conclusion, Disney faces both opportunities and challenges as a result of digital media and technology. By the use of digital media and technology, the company may reach a larger audience, improve the customer experience, and increase operational efficiency. Nonetheless, the corporation faces substantial hurdles due to rising competition, cybersecurity issues, and copyright infringement. To retain its success in the media and entertainment sector, Disney must handle these opportunities and challenges as it continues to develop and adapt to the digital landscape.
