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Disney could not immediately capitalize on the opportunity with most of its content licensed to cable networks and other SVOD services (Netflix). Moreover, as consumers consistently demonstrate their desire for subscription video on demand (SVOD), Disney has both quality content and library size to create a meaningful SVOD offering. According to the Video Advertising Bureau, 72% of US households with broadband subscribe to an SVOD service, and 81% of those individuals prefer to watch across devices.
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However, consumers demonstrated a willingness to pay for continuous access to a full library of their favorite content and the ability to access content across platforms. These viewing options were also meet with access challenges, as the content was not available across platforms (mobile, tablet, etc.). To achieve an on-going relationship with content traditionally required an expensive investment in purchasing an entire catalog (via downloads/DVD), or patiently waiting for the content to appear in a consumer’s preferred viewing format (cable, broadcast, on-demand TV, etc.).
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Users, due to an insatiable affinity for Disney’s characters and franchises, desire a continuous relationship with the content. Live-action franchises (Marvel) and young adult animation (The Simpson’s) gave us the social courage to deeply connect with our identity to embrace adversity and acknowledge our quirky sense of humor. Character-driven animated movies, such as Aladdin and Mickey Mouse, allowed us to explore our youthful imagination. Disney, and now 21st Century Fox, has a rich history of creating some of the most celebrated content of this century.