👉 Background: Disney is one of the biggest brands in the whole world with some of the most iconic movies like Beauty & The Beast, Monsters Inc, Aladdin, Marvel, Star Wars, and about 1 squillion more. After the success of Netflix, Disney launched its streaming service Disney+ in 2019 in the US, and then shortly after in Australia where it has grown to 3.1 million Aussie subscribers.

‍👉 What happened: Apart from the cartoons and superheroes, Disney also owns ESPN — the sports broadcaster who owns the rights to NBA, NHL, and UFC fights. While Disney has millions of streamers, it wants to acquire more young male sports fans to its Disney+ service- so now, Disney will roll out ESPN as part of its Disney+ offering in Australia.

‍👉 What else: For now, ESPN will also still be available on Foxtel and Kayo…but who knows how long?! And ESPN is already streaming the NBL in Australia and has said it could even go after games like the NRL’s State of Origin. And it’s pretty clear that Disney plans to grow its market share through bundling.

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‍What's the key learning?

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‍💡Bundling allows companies to attract new customers without creating an entirely new product. By combining major sports with its existing movies and TV shows, Disney+ increases its appeal to a broader audience, especially younger male sports fans.

💡Many of these sports fans might not have been interested in Disney+ for Marvel or Pixar content - but they might subscribe for live NBA or UFC events. Bundling can also boost customer retention. Once subscribers get access to both entertainment and live sports in one place, they’re less likely to cancel.

💡We’ve seen this approach work with Amazon. In fact, Amazon Prime Video’s churn rate is just 8% - which is the lowest in the streaming industry because it comes with Amazon Prime’s shopping perks.