I was so moved at yesterday’s news from Disney that the company plans to pull its content from Netflix in order prime its own digital channel. I emailed our data and analytics research community with the title of this blog: Disney is betting, I wrote, on the greater value on locking down access to its own data versus the shorter term value accrued from a partner channel. In other words, the value of information is greater than the value from a channel.
The first response from my peers was not expected. A colleague suggested that this was more a battle of brand value- Disney versus Netflix. I disagreed. The reason I disagreed and stuck to my data versus channel was based on the target customer. Netflix is targeting successfully the millennial- the individuals who eschew cable that oldies like you and me assume is the norm. Disney gets this distinction too which is why they want to limit access to their content. Disney wants to target millennials too.
More importantly was this: my children are just as brand savvy as we used to be when we were young and hip, and yes they know Netflix. They watch it every day and never view a program via cable. But Disney is not a brand they described to me as hip: “It’s those movies you and mom used to go watch” and holiday fun-parks. They don’t easily recognize the modern Disney brand behind some of the more modern movies they have seen.
Finally, Jim Cramer called out the story on his Mad Money program on CNBC last evening. He basically laid out the same reason I came up with above, which I found pleasing. So I come full circle: ownership of the data, and the ability to license it, is more valuable long term than the channels that offered access to it. Welcome to the digital economy economy.
Read Complimentary Relevant Research
Predicts 2017: Artificial Intelligence
Artificial intelligence is changing the way in which organizations innovate and communicate their processes, products and services. Practical...
View Relevant Webinars
How to Live Without Mobile Device Management
This webinar addresses the growing trend of users refusing to have enterprise management of their mobile devices due to privacy concerns....
Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes, with attribution to Gartner. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.