Disney+: Another Unprofitable Direct to Consumer Concept

With news today that Bob Iger is returning to Disney as CEO after a roughly 3 year hiatus, it’s pretty clear that one of the main motives for this move has been the highly un-profitable Disney +, the company’s streaming arm, or as some call it, the new ‘cable’ bill. Like many companies that have legacy wholesale relationships, Disney is trying to make the economics of selling content directly to consumers sustainable. There are a lot of similarities between all the DTC brands today (Warby Parker, Casper, Away, AllBirds, Blue Apron, etc) and Disney+. 

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Partnerships Are Your Hidden Weapon

A VC once told me that 50% of some of their portfolio companies’ growth is coming through partnerships. I wasn’t surprised, but I found this quite interesting, because successful structure and execution seems to be the achilles heel of many organizations. 

Through the marketing lens, there’s no shortage of content and advice on how to grow your startup. The thing is, most startups look at marketing as a cost center (which it usually is) but there is white space here that is more efficient than marketing and that is through partnerships. Now, I know “partnerships” is a broad term, but let’s try and narrow it down by focusing purely on revenue generating initiatives. In my previous roles roles at Casper and Newell Brands, I oversaw numerous innovative partnerships and here are some lessons I learned as well as some thoughts on why this space continues to be undervalued. 

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