🐭📦 Coming Soon: Disney+ Prime?
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In the Markets
Featured Story
Walt Disney (DIS 0.00%↑) is dipping their toes into the membership program realm where they plan on offering discounts and perks to encourage customers to spend more within the Disney ecosystem including Disney+, Disney theme parks, resorts, and merchandise.
The discussions at Disney are in the early stages but the program would be akin to Amazon Prime, which currently offers perks such as free shipping, discounts at Whole Foods, and access to Prime Video for a monthly or annual fee. The effort has the backing of Chief Executive Bob Chapek who has been vocal both internally and publicly about the opportunity for Disney to do more to cross-sell to customers.
Membership programs have gained popularity after the success of retailers such as Amazon (AMZN 0.00%↑), Walmart (WMT 0.00%↑ ), and Starbucks (SBUX 0.00%↑). These membership programs help companies better understand customers’ purchasing habits while offering discounts or perks that encourage them to remain loyal. By discussing a membership program, Disney is betting they could offer customers more value, prompting them to spend more on the company’s products and services while collecting information about their customers’ preferences.
The streaming video service industry has gotten intensely competitive and all major players are exploring various avenues to boost growth, from selling ads to new distribution partnerships. Many companies have opted to include their streaming services as a draw for a broader membership program. Walmart said this month they would add free Paramount+ to their $98/month Walmart+ program and Amazon already offers Prime Video as part of their package.
Should Disney ultimately choose to move forward and create a membership program, it would be one of the more interesting programs given all the diverse offerings they have. Disney’s wide range of products and services includes their vast library of exclusive Disney entertainment content, theme parks around the world, travel experiences stemming from cruises to private-jet trips, as well as clothing and toys. Disney’s offering is something we have yet to see before and if executed well, could disrupt multiple industries and propel Disney to the top.
Weekly News Roundup
California Power Grid Faces Biggest Blackout Risk of Year as Heat Wave Intensifies (WSJ)
Following days of triple-digit temperatures, the Californian power grid faced a nearly record-breaking level of demand on Tuesday. Governor Gavin Newsom said the heat wave is expected to be the state’s longest and hottest on record for the month of September and urged Californians to conserve energy after an emergency alert was triggered to prepare for energy deficiencies.
RH: Officials say residents need to conserve two to three times more energy than they have been just to keep the power on. It’s going to be a hot September.
HY: It was between 100-115F the entire weekend throughout California, and today is the first day it’s lower than 100F as I type this.
U.S. Gasoline Prices Fall to Pre-Ukraine Invasion Levels (Reuters)
U.S. wholesale gasoline prices fell to their lowest levels since before Russia’s invasion of Ukraine on Wednesday, signaling that lower prices at the pump are coming over the next few weeks. The price for a gallon of gas hit an all-time record in mid-June at over $5 due to the lack of spare refining capacity. The reduced demand as winter approaches has reeled in prices, however.
RH: You’ve probably already noticed this at the pump already but glad to see that its on a downward trajectory.
HY: My gas prices are still expensive AF, so I’m not 100% sure this is back to pre Ukraine invasion levels for me in California.
Disney Explores Membership Program Like Amazon Prime to Offer Discounts and Perks (WSJ)
Walt Disney (DIS 0.00%↑) is exploring a membership program that could offer discounts/special perks to encourage customers to spend more on its streaming services, theme parks, resorts, and merchandise. The program would be somewhat akin to Amazon Prime which currently offers free shipping, discounts at Whole Foods, and access to Amazon Prime Video.
HY: Personally hate subscription services but our world is trending that direction since recurring revenue is so strongly valued.
Chart of the Week
For the first time in two years, US consumers expect home prices to fall over the next 12 months. Consumers also anticipate that rental price growth will slow, with expectations dropping by the most ever.