Disney Moves Aggressively into Streaming. Could It Miss Out on New Audiences?

Sam Blake

Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

Disney Moves Aggressively into Streaming. Could It Miss Out on New Audiences?

Disney now has over 137 million subscribers to its streaming platforms, including Hulu and ESPN+ — and it's about to boost its original content on its flagship service, Disney Plus.

The company announced plans to add 10 Star Wars series and 10 Marvel series to that service over the next few years, along with 15 new series from its Live Action, Animation and Pixar divisions, and 15 feature films from those divisions. In total it plans to add over 100 new titles to Disney Plus each year.


In the U.S., the price of the service will increase by a dollar to $7.99 starting in late March. Existing subscribers will have a six-month delay on the hike.

Disney will debut "Disenchanted," "Sister Act 3" and a live-action "Pinnochio" starring Tom Hanks as Disney Plus exclusives. "Raya and the Last Dragon," which had been planned for theaters, will now premiere on the streaming service in addition to theaters and "Black Widow," the expected Marvel blockbuster starring Scarlett Johansen, remains slated to debut exclusively in theaters in May.

Disney execs had been somewhat quiet about the company's strategic vision and encouraged listeners to wait for December 10th. CEO Bob Chapek told investors last month, "you're going to see [then] that we're going to put a lot of wind in the sails of our Disney Plus business."

That was before Warner Bros. announced that it would blow a gale of its own into its own streaming service by saying it would release its entire 2021 slate of 17 films simultaneously in theaters and on HBO Max, where they will remain for one month. Before that, Universal decided to make "Trolls World Tour" available for on-demand digital rental, rather than adhering to the long-sanctified theatrical window, which historically has given cinemas a 60-90 day period of exhibition exclusivity.

When Disney launched Disney Plus in November 2019, it anticipated its subscribers would grow to between 60 and 90 million by 2024. Thanks in no small part to the pandemic, Disney Plus has obliterated that forecast. As of December 2nd, Disney Plus had 86.8 million subscribers, the company announced Thursday. It's now re-evaluated that outlook, aiming to grow to 230 million to 260 million subscribers, including its international platforms, by 2024.

That rapid progress has encouraged a corporate reorganization to focus on streaming, as well as the suspension of the company's dividend payment, to the delight of some activist investors who had called for Disney to invest more in streaming.

Disney Plus Is Shining, but It's Not the Only Star

Disney's streaming services now have over 137 million subscribers when you figure in Hulu (38.8 million subscribers) and ESPN+ (11.5 million). For comparison, it took Netflix seven years from the launch of its streaming service to surpass 100 million subscribers.

As to whether Disney's plans to shift films away from the big screen and onto its streaming platform are short-term only, head of distribution and monetization Kareem Daniel, who recently took that role as part of the corporate reorg, said the company will keep its options open.

"We will continue to shift and optimize according to what is best for the consumer and our business," he said.

To expand its streaming reach internationally, Disney will be riding its Star brand, which the company acquired when it bought Fox in 2019. Now, Disney is expanding its Star-branded offering with two separate strategies – which will include price hikes. In Europe, Canada, Australia, New Zealand and a few other markets, Disney will integrate Star into its Disney Plus app, adding a variety of more broadly-appealing "general entertainment" offerings, including local content for each market. The move will come with a price increase, however: up two euros to €8.99 in Europe, and similar increases elsewhere.

In Latin America, where Disney launched Disney Plus in November, Disney will roll out a separate app, Star Plus in June. It will offer local content and sports, including ESPN.

Bob ChapekDisney CEO Bob Chapek at Thursday's "Investor Day" conference.

In the U.S., Hulu and ESPN+ will remain separate apps, also available as a bundle with Disney Plus – which will see a $1 price increase as well, to $13.99 – and play the role of fulfilling that broader-appeal strategy. Disney also announced a newer bundle, which includes Hulu without ads, for $18.99.

In sum, it's full speed ahead for Disney's ongoing transition from a widely recognized brand with an entrenched value proposition into a fully fledged growth company. Investors seem to like it. Wells Fargo analyst Steven Cahall has suggested that Wall Street is willing to shift its approach to Disney, prioritizing growth metrics like subscriber counts over more traditional measures of profitability.

By the end of November, the company reached a record-high stock price. In after-hours trading on Thursday, it reached a new all-time high of $160.21, up over 3% from the market's close.

It's a rosy picture right now, but questions linger about the longer-term consequences of Disney's aggressive shift to streaming.

Will the Bet on Disney Plus Pay Off?

In the near-term, with theaters and theme parks closed or operating at limited capacity, it makes sense for Disney to shift content to its exclusive platform; Wall Street obviously approves. That shift, and the broader prioritization of streaming on its exclusive platforms, comes with an important trade-off, however. On its exclusive platforms, Disney's franchises and characters reach fewer people compared to more broadly distributed channels like cable and movie screens.

Exposing fans to Disney's storytelling is the essence of the company's business. Fan affinity to cute, anthropomorphic creatures, cinematic universes like Star Wars and Marvel, and Disney's seemingly endless trove of characters that pull on kids' heartstrings and parents' wallets all drive purchases of other Disney products, including merchandise, theme park tickets and hotel and cruise line reservations. This strategy has been heralded by some analysts as "Disney as a Service."

The gamble with a shift to streaming is that the loss of essentially unlimited reach through traditional channels will be offset by the value that comes with the more targeted capabilities of a direct-to-consumer strategy. By knowing precisely what customers click on and when, across all of Disney's assets, the company hopes to be able to squeeze more money out of its high-affinity customers. Or, as Kareem Daniel put it, Disney's "numerous consumer touchpoints" will provide "insights to optimally engage" consumers with the "goal to maximize audience engagement and commercial impact."

The bet on direct-to-consumer streaming is that the sacrifices Disney is making – less money from licensing its content and from the box office and its TV networks, investment into its exclusive DTC platforms, and the reduced reach that comes with that – can enable the company to more effectively transform the love and affinity its stories create into dollars.

One potential consequence: If Disney subscribers grow to expect content on its streaming services that the company is not planning to deliver on a sustained basis once the pandemic subsides, Disney risks disappointing them down the road, which may lead them to look elsewhere. After all, there are plenty of other services; it's not for nothing that they call it a streaming war.

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Sam Blake primarily covers entertainment and media for dot.LA. Find him on Twitter @hisamblake and email him at samblake@dot.LA

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Luxurious Second Home Ownership without the Headache: How Pacaso is Changing the Landscape of Real Estate

🔦 Spotlight

Pacaso addresses the pain points of second home ownership, offering a luxurious, flexible, and financially sound alternative to traditional second homes and ultra-luxury hotels. Co-founded in 2020 by entrepreneur Austin Allison and former Zillow executive and prominent LA tech figure Spencer Rascoff, Pacaso, an unicorn startup, has redefined vacation home ownership with its unique co-ownership model. Rascoff's contributions to the LA tech scene extend beyond real estate; he also founded 75 & Sunny, an LA-based startup studio and venture fund, and co-founded dot.LA, an LA tech news and events company.

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🤝 Venture Deals

LA Companies

  • Oak Essentials, the natural skincare brand founded by Jenni Kayne, has raised an undisclosed amount in Series A Funding from Silas Capital and Unilever Ventures. This investment will drive the brand’s expansion, focusing on product development, boosting marketing efforts, and expanding distribution channels. - learn more
  • Playhouse MD, an upcoming children’s healthcare platform that incorporates play to enhance health outcomes, has raised $4M in funding, according to a recent SEC filing. - learn more
  • FluidLogic, a high-performance hydration system provider, raised $15M in a Series A Extension led by Solyco Capital to support product development and innovation for adventure sports and outdoor endurance categories, with consumer products launching in early 2025. - learn more
  • Reflect Orbital, which uses in-space reflectors to direct sunlight to solar farms and large-scale lighting applications after sunset, has raised $6.5M in seed funding led by Sequoia Capital. The funding will help the company develop production vehicles and expand its team as it builds space-based energy infrastructure. - learn more

LA Venture Funds
  • Smash Capital led a €20M Series B round into Vilnius-based Ovoko, an e-commerce platform for buying and selling used car parts across Europe, marking Smash Capital's first investment in Lithuania. The funds will support Ovoko's product development, market expansion, and team growth as it aims to dominate the European market for second-hand automotive components. - learn more
  • M13 led a $9M Series A Funding Round for Zenlytic, the world’s first self-serve business intelligence platform. - learn more



LA Exits

  • Continuum Global Solutions’ healthcare vertical has been acquired by Everise, a customer service management company, enhancing Everise’s capabilities in pharmacy benefit management and expanding its growth prospects in the healthcare sector. - learn more
  • Radical Semiconductor, a company specializing in processing-in-memory technology, has been acquired by BTQ Technologies, a leader in post-quantum cryptography. This acquisition strengthens BTQ’s ability to secure data in the post-quantum era by integrating Radical Semiconductor's advanced technology portfolio. - learn more

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🎧The Essential Podcast Playlist for Entrepreneurs, Founders, Tech Pros, and VCs

Podcasts offer a front-row seat into the minds of the most successful entrepreneurs, VCs, and industry thought leaders. Whether you're scaling your startup, raising capital, or simply staying ahead of the game, these shows deliver invaluable insights, actionable lessons, and fresh inspiration. And let’s be honest, if you’re stuck in LA traffic (again), what better way to kill time than by learning from the best? Here’s a roundup of our top podcasts for entrepreneurs, founders, tech professionals, and VCs, complete with why they’re a must-listen.

Image Source: Apple Podcasts

The a16z Podcast

  • What it discusses: Covering a broad spectrum of topics like AI, blockchain, healthcare, and fintech, the podcast features interviews with founders, VCs, and tech leaders shaping the future.
  • Why you should listen: Get access to cutting-edge insights from one of the world’s most influential VC firms, keeping you ahead of emerging trends.
  • Why it’s great for entrepreneurs, founders, and VCs: This podcast brings cutting-edge insights from one of the top VC firms. Entrepreneurs will learn about emerging technologies, while VCs can stay ahead of investment trends shaping the future of tech.

Listen on: Spotify |Apple Podcasts



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Acquired Podcast

  • What it discusses: Acquired breaks down the stories behind major tech acquisitions, IPOs, and exits, dissecting the strategies and market dynamics involved.
  • Why you should listen: Gain deep insights into how tech giants build and sell, making it essential for anyone aiming to understand successful exits.
  • Why it’s great for entrepreneurs, founders, and VCs: Perfect for founders looking to scale or position themselves for acquisition. VCs will benefit from the deep dives into the playbooks of successful exits, offering valuable lessons on company growth and market positioning.

Listen on: Spotify |Apple Podcasts



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The All-In Podcast

  • What it discusses: From venture capital and tech trends to politics and economics, this podcast delivers unfiltered, candid commentary from high-profile industry insiders.
  • Why you should listen: It’s a no-holds-barred discussion on major issues affecting the tech industry, providing you with insider insights into the conversations that shape Silicon Valley.
  • Why it’s great for entrepreneurs, founders, and VCs: The candid, unfiltered conversations give listeners a peek into the decision-making processes of some of the biggest names in tech and VC. Entrepreneurs can gain valuable market insights, while investors will appreciate the high-level strategy discussions.

Listen on:Spotify | Apple Podcasts



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BG2 Podcast

  • What it discusses: BG2 takes you through macroeconomic trends, the tech market, venture capital insights, and cutting-edge technologies like AI. It’s a high-level conversation on tech investing.
  • Why you should listen: Brad and Bill’s deep experience in tech investing, combined with their straightforward, no-nonsense style, makes this a must-listen for tech insiders.
  • Why it’s great for entrepreneurs, founders, and VCs: Get insider-level insights into the macro trends driving tech investments. Founders will learn how to navigate these trends, while VCs can better understand the shifting forces in the venture world.

Listen on: Spotify | Apple Podcasts



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Crucible Moments Podcast

  • What it discusses: The podcast dives into the pivotal, career-defining moments of top leaders and entrepreneurs. Guests share personal stories of resilience, growth, and how they overcame adversity.
  • Why you should listen: It’s packed with inspirational stories of grit and perseverance, offering lessons that apply to both life and business.
  • Why it’s great for entrepreneurs, founders, and VCs: The podcast’s focus on personal and professional resilience makes it especially valuable for entrepreneurs who need inspiration during tough times, and VCs who want to understand how founders overcome adversity.

Listen on: Spotify | Apple Podcasts



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Grit Podcast

  • What it discusses: In-depth interviews with founders, executives, and leaders who share stories of navigating challenges, building resilience, and finding success in tough times.
  • Why you should listen: If you want raw, real stories of leadership and determination, this podcast offers invaluable insights into what it takes to lead in business.
  • Why it’s great for entrepreneurs, founders, and VCs: The podcast’s focus on perseverance and leadership makes it a must-listen for founders facing challenges in their business. VCs will gain insights into the traits that make strong, resilient founders.

Listen on: Spotify | Apple Podcasts



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The Twenty Minute VC

  • What it discusses: Featuring short, insightful interviews with top VCs and founders, this podcast covers topics ranging from securing funding to scaling startups.
  • Why you should listen: Perfect for busy professionals who want quick, actionable advice on navigating the venture capital world.
  • Why it’s great for entrepreneurs, founders, and VCs: For busy entrepreneurs, this podcast delivers quick, actionable advice on funding and scaling. VCs can stay connected to the latest trends through bite-sized interviews with industry leaders.

Listen on: Spotify |Apple Podcasts


These podcasts are packed with insights, inspiration, and actionable advice for anyone looking to grow, innovate, or level up. Whether you're building something new, looking for investment know-how, or just eager to learn from those who've been there, each show has something valuable to keep you moving forward on your journey.

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📱From Digital IDs to AI Feeds: Tech Giants Shake Up the Digital World

🔦 Spotlight

Happy Friday Los Angeles!

This week, two tech titans, Apple and Snapchat, announced groundbreaking updates that are poised to reshape the way we interact with our digital devices. From secure digital IDs to personalized AI feeds, these innovations are set to have a significant impact on our daily lives.

Apple's Digital Driver's License: A Game-Changer for LA Residents

Apple has taken a major step forward in digital identity with the integration of California driver's licenses and state IDs into Apple Wallet. This initiative, part of the state's mobile driver's license (mDL) program, offers a more convenient and secure way for LA residents to carry their identification. With encrypted data and NFC-enabled verification, users can now use their digital IDs at TSA checkpoints, select retailers, and even for age verification at bars and restaurants.

The mDL program not only simplifies travel and everyday transactions but also presents exciting opportunities for LA-based startups specializing in fintech, cybersecurity, and identity verification. As digital IDs become more widely adopted, these startups can innovate to create new applications and services that leverage this technology.


Image Source: Snap

Snapchat's AI-Powered Feed and Enhanced AR: A Personalized Experience

Snapchat is undergoing a major transformation with its most significant redesign in years, focusing on simplicity and personalization. The app now offers a more personalized experience, with an AI-driven "For You" feed that curates content tailored to individual preferences. Additionally, Snapchat has enhanced its augmented reality (AR) tools, opening up new possibilities for interactive experiences and creative expression.

LA's thriving tech ecosystem, particularly its startups focused on AI and AR, stands to benefit greatly from Snapchat's innovations. These updates provide opportunities for local developers to create complementary technologies and explore new partnerships within Snapchat's evolving platform.

Impact on LA's Tech Ecosystem

Both Apple's and Snapchat's updates underscore a growing trend toward personalization, security, and streamlined user experiences. LA's tech scene, with its vibrant startup community and strong focus on innovation, is well-positioned to capitalize on these shifts.

As digital experiences become more integrated into our daily lives, LA's startups can explore new frontiers in AI, AR, and secure mobile technologies. This wave of innovation is set to drive growth and collaboration within the local tech ecosystem, solidifying LA's reputation as a global hub for cutting-edge technology.


🤝 Venture Deals

LA Companies

  • PictorLabs, an AI-powered histopathology platform that enhances disease detection, has raised a $30M Series B led by Insight Partners. The company has now raised a total of $48.8 million. - learn more
  • Mellomanic, formerly We Are Giant, has raised a $6M Funding Round, bringing its total capital to $13.8M, to expand its platform and enhance its music experiences for artists and fans, backed by investors including Sterling Partners. - learn more

    LA Venture Funds

    • Mucker Capital participated in a $2.5M Seed Round for Tab Commerce, a fintech company providing financial management solutions to transform how restaurants handle their spending and optimize operational efficiency. - learn more
    • Finality Capital led a $3.2M Seed Round for RISE, a Gigagas Layer 2 blockchain platform designed to enhance scalability and reduce transaction costs. - learn more


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