Disney Plus is a video streaming and video-on-demand service providing American multinational company. BAMTech founded the video streaming platform in 2015; it is now under the ownership of the Walt Disney Company. Today, we’ll discuss the PESTLE analysis of Disney Plus; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Disney Plus
Some of the main political factors in the Disney Plus PESTLE analysis are as follows;
I-Censorship
The content censorship policy of different countries is different. Disney Plus should keep in mind the video content censorship regulations and policies of different countries while running and streaming video content in different countries. It is because not every country promotes and welcomes the freedom of speech and content contrary to their regulations and policies.
II-Public Policy
IPR (intellectual property rights) and public policies are the core and heart of the digital streaming business. Disney Plus should make sure to protect the IPR of its content to avoid any type of piracy. In fact, the video streaming platform is collaborating with various political parties to increase the copyright time duration and make amendments to its laws.
III-Government & Political Alliance
Disney Plus is also collaborating with various governments, political parties, and regulatory departments for the growth of its business in the global market. For instance, the company has developed alliances with various political and government institutions for the growth and success of its new venture Shanghai Disneyland.
Economical Factors Affecting Disney Plus
Some of the main economic factors in the Disney Plus PESTLE analysis are as follows;
I-Economic Recession
The global economy has been going through a recession phase since the pandemic crisis. It poses a significant challenge to the video streaming platform to maintain a large database of users. Many people have lost their jobs due to various political and international issues. When people have limited income, they won’t spend on luxury items.
II-Currency Exchange Rae
A significant amount of capital revenue of Disney Plus comes from the global market and the countries in Europe and Asia. The value of the USD is lower than the British Pound and the Euro, and it decreases the net revenue and profitability after the conversion of the foreign currency into the USD.
III-Inflation and Interest Rate
Inflation rate and interest rate are the two main economic indicators and they directly impact the business of Disney Plus. When the interest rate of the country is higher, people would focus on saving their money rather than buying luxury items. On the other hand, the inflation rate would make things expensive for the users and the video streaming packages become unaffordable for many people.
Social Factors Impacting Disney Plus
Some of the main social factors in the Disney Plus PESTEL analysis are as follows;
I-Cultural Sensitivity
Disney Plus should keep in mind the cultural sensitivity element while playing and running its video content in various countries across the globe. There is a great difference between Asian, European, Asian, Indian, Muslim, African and Middle Eastern cultures. A film and video would be acceptable in the US, but it is not in Asia and Muslim countries. We often hear the news that Middle Eastern countries banned a particular film.
II-Representative
In order to achieve the global acceptance rate, Disney Plus should develop diverse content by including characters and people from various ethnic backgrounds. It allows the company to increase the cultural acceptance rate when films have heroes from various backgrounds.
III-Leisure Activities
The trend of watching videos as a leisure activity has been increasing significantly for the past few years. it present a great opportunity to the video streaming platform Disney Plus to offer multiple types of packages to target various segments of the customers market.
Technological Factors Affecting Disney Plus
Some of the main technological factors in the Disney Plus PESTEL analysis are as follows;
I-Digital Streaming
Disney Plus has invested a significant amount of capital resources in the development of its digital streaming video platforms. The company is investing in the latest technological tools and equipment to regularly maintain and update its video streaming platform relevant to the interests and demands of customers.
II-Animation
Along with developing the video streaming platform, Disney Plus is also investing in video animation technology to improve the quality of animated films. It has allowed the platforms to launch various animation films and cartoon series for kids and adults. However, it shows the company’s strong commitment to innovative and creative content to improve the user experience.
III-AR and VR
Speaking of improving the user experience, Disney Plus has invested a significant amount of resources in AR (augmented reality) and VR (virtual reality) technology. It allows the company to offer a reality experience to the users and entertainment viewers; makes them feel that they are in the film rather than watching it.
Legal Factors Impacting Disney Plus
Some of the main legal factors in the Disney Plus PESTEL analysis are as follows;
I-Content Regulations
Disney Plus should comply with the content streaming regulations and IPR laws of different countries. The video streaming market has become highly competitive worldwide, and it poses a significant obligation to the company to ensure the compliance of its video content in multiple countries.
Environmental Factors Affecting Disney Plus
Some of the main environmental factors in the Disney Plus PESTEL analysis are as follows;
I-Sustainability Initiative
Disney Plus has taken various environmental sustainability initiatives to show and prove the company’s strong commitment to nature and the environment. They are like renewable sources and clean energy to decrease the carbon emission rate and have a limited impact on the environment.
Conclusion: Disney Plus PESTLE Analysis |PESTEL Analysis of Disney Plus |External Environmental Analysis of Disney Plus | Strategic Analysis of Disney Plus
After an in-depth study of the pestle analysis of Disney Plus; we have realized that Disney Plus is the world’s leading digital video streaming platform.
If you are learning about the Disney Plus PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
