Disney is looking at new ways to engage young fans, Dana Walden told the Morgan Stanley Technology, Media and Telecom Conference on Tuesday. Walden, the co-chairman of Disney Entertainment at the Walt Disney Co., told media analyst Ben Swinburne that the company is aiming to target kids and young families on the social media platforms where they consume a lot of content — especially YouTube.
“They’re clearly on YouTube,” Walden said. “And we have a meaningful and great partnership with YouTube. We produce thousands of videos based on our series specifically for YouTube. Disney Junior, I think, has 22 million subscribers. We do that because we know that’s where kids like to consume content. Along with Disney+, we want to keep them engaged. We want to keep incubating IP on a platform that’s important to creators and kids.”
To that end, Walden hinted at “the work we’re doing now, although I have nothing specific to announce on the technology side, are features that will specifically address how kids are interacting with content right now in a very contemporary way… looking holistically at that kids audience, we know we have the stories that they love. We’re working on the technology that will allow them to engage with them in a in the way they want.”
Beyond that, Walden touched on the upcoming launch of the ESPN over-the-top service — currently dubbed “ESPN Flagship” — which will feature the ESPN networks outside of the cable bundle for the first time, in addition to ESPN+. Walden suggested ESPN boss Jimmy Pitaro would have more information, but added, “I’ve seen a little bit and it’s incredibly exciting. The new features that they’ll bring to market with the launch of Flagship, I think are really going to blow people away.”
Walden added that sports is also an important element for Disney+, especially now that the service includes an ESPN tile (which features programming like “30 For 30”). “It’s of enormous value to these subscribers,” she said. “It’s over 3000 hours of long form programming. And then yesterday, we actually launched something I’m very excited about, which is SC+. It is a daily ‘SportsCenter’ show produced by SportsCenter and ESPN. It is going to help us, I think, to include people who are casual sports fans in this conversation that is obviously dominating cultures around the world. A daily touch point for sports on Disney+, a reason every day to open the app.”
Touting the Disney+, Hulu and ESPN+ offerings, Walden said the company was “enormously proud of all we’ve accomplished in streaming, especially over the past two years. As you well know, not too long ago, we were losing over a billion dollars a quarter. We are now profitable, growing revenue and delivering, with visibility towards double digit margins.” That includes the recent launch of Hulu on Disney+. “It’s an extraordinary value for subscribers,” she said. “It’s driving engagement… and cause for extreme optimism about our future.”
On the international front, Walden also sees “tremendous opportunity” for growth: “It’s still a very young platform. We’re working on our local originals so that we have content around the world that is relevant to local subscribers, along with our big global hits. Our company is producing and releasing in streaming a huge number of hits that travel around the world.
“Creating a pipeline of content takes some time, but the great news is, in each of the regions, we found bonafide hits,” she said. “For example, in Korea last year, we released a show called ‘Moving’ that signed up over a million and a half subscribers and created a huge event in that market — along with all of the rest of the content from the United States. We’re doing local for local, and then local for regional, and then global for the whole world.”
As for domestic hits, Walden pointed to the tremendous success of FX’s “Shogun,” which has just completed an impressive Season 1 string of wins at the Emmys, Golden Globes, Critics Choice, SAG Awards and more. And, with the writers’ room now wrapped for Season 2, expect firm news on the next season very soon.
“We like to bake it carefully,” she said. “We will not release the Season 2 until it’s ready.”
