Business model canvas: Disney Plus Example
One thing that makes business analyst work more thrilling is a usage of tons of different models and techniques to represent information. When I asked my tutor during CBAP preparation do we really need to learn so many frameworks, he honestly answered that he applies only 30% of techniques in his job and the most convenient way is still just an ordinary table.
However, there are some techniques and even more accurately to say conceptual approaches that I find really helpful. I am going to provide you an example of The Business Model Canvas (BMC) framework that works perfectly for strategic analysis.
Using this framework you can evaluate the current state of organization on one page and think over a path to achieve the desired future state. The Business Model Canvas is a good technique to describe how a company creates values for and from its customers.
In this article, I will provide you an example of BMC for a rapidly growing streaming service Disney Plus. Make sure that this framework represents only internal situation, you can use SWOT analysis to examine the impact of social and environmental factors. So let’s get started!
Value Proposition
Which customer’s problems do you help to solve to each customer segment? Which customer needs are you satisfying?
Disney Plus Value Proposition: The greatest stories, all in one place.
- Download any movie or series and watch on-the-go
- Host virtual movie nights with friends
Key Resources
What key resources do your value propositions have?
Disney Plus Key Resources: streaming platform development — online video library and video-on-demand service
Key Partnership
Who are your key partners or suppliers? Which key activities do partners perform?
In case of Disney Plus the key partners are content partners (publishers, computer animation studios, media outlets, video-on-demand providers)
Disney Plus Key Partnership: PIXAR, MARVEL, STAR WARS, National Geographic, STAR
Key Activities
What key resources do our value propositions require? Which distribution channels we use?
Disney Plus Activities: Technology infrastructure, social networks accounts
Channels
Through which channels do your customer segments want to be reached?
Disney Plus Channels: ads in social networks and video promotion especially Desktop Display, Mobile Display, Mobile Video, Desktop Video, Facebook, Twitter, Instagram
It’s interesting to note that since its launch in November 2019, Walt Disney Co has relied heavily on Facebook and desktop video to promote Disney +. These two make up 80% of the brand’s $525M ad spend for 2020.
Customer Relationship
What type of relationship does each of our customer segments expect us to establish and maintain with them? How costly are they?
Disney Plus Customer Relationship: emotional and price effect
1) Emotional effect. People feel strong emotional connections to, and they’re using that to their advantage with the characters from Marvel, Star Wars, National Geographic, Pixar, and 21st Century Fox.
2) Price effect. Disney is starting at a very low price point: $6.99 per month–$6 cheaper than Netflix’s standard package.
Customer Segments
For whom are we creating value? Who are our most important customers?
Disney Plus Customer Segments: households with children, young adults and adults
Cost Structure
What are the most important costs inherent in your business model? Which key activities are the most expensive?
Disney Plus Cost Structure: platform development, marketing and sales, research and development, general and administrative
Revenue Streams
For what value are your customers currently paying?
Disney Plus Revenue Streams: monthly and yearly subscription
Even though the framework was developed in 2008, it retains demanding today because of simplicity and easy to read features. You can find a lot of free templates in the search engines to create your framework.
