Disney wants to try adding a membership program like Amazon Prime. This was reported by The Wall Street Journal. Such a program could offer various exclusive privileges, discounts, and other niceties to subscribers so that they spend more money on Disney products and services. In this way, Disney could additionally gather more information about customers’ tastes and habits. This will improve the company’s ability to cross-sell in areas ranging from streaming services to theme parks and merchandise.
The WSJ reports that discussions about the membership program are at a very early stage. It is unclear which Disney audience segments it will target, how much it will cost and when the program might launch. Internally, some executives are calling the project “Disney Prime”. However, it is unlikely the program will be called that.
Kristina Schake, Disney’s chief communications officer, confirmed in a statement to the WSJ that the company is considering a membership program. “Technology is giving us new ways to customize and personalize the consumer experience so that we are delivering entertainment, experiences, and products that are most relevant to each of our guests,” said Schake. “A membership program is just one of the exciting ideas that is being explored.”
Disney already has a so-called D23 fan club, which costs $99.99 a year for one person or $129.99 for two. In principle, it can also be counted as a membership program. Benefits include the ability to buy exclusive merchandise, a subscription to the quarterly Disney twenty-three magazine, and discounted tickets to the D23 Expo, which positions itself as the “ultimate Disney fan event”. According to the WSJ, the proposed membership program will target more casual fans.
The main benefit of the “Disney Prime” membership program will be the company’s ability to offer customers more of its products. During a recent earnings call, Disney CEO Bob Chapek referred to the company’s “franchise flywheel” and its ability to “reach people with our uniquely engaging content across an array of touch points.”
In other words, Disney owns a lot of content, from Marvel to Star Wars, Pixar, etc., and it has a streaming service, theme parks, resorts, and even building its own apartment complexes. All of this can be combined and allow people to truly live in Disney.
