Disney is grappling with a significant decline in its influence over children, as many kids now prefer watching content on YouTube over traditional Disney channels and streaming services. Since Bob Iger's return as CEO in late 2022, Disney has made some positive strides, including strong earnings reports and new partnerships. However, the core issue remains that kids' TV consumption has shifted dramatically towards streaming, with YouTube commanding the largest share of viewing among children aged 2-11.
Disney Channel's viewership has plummeted, and despite Disney's efforts to engage kids on platforms like YouTube, the company struggles to draw them back to its own services. The Disney+ streaming service is primarily subscribed to by adults without children, and Disney's attempts to create engaging short-form content on YouTube have yet to significantly redirect kids to their platforms.
Compounding these challenges, Disney's box office performance has faltered, and there is a growing concern over the lack of new, compelling franchises to attract young audiences. Disney's traditional strategy of acquiring major brands like Pixar, Marvel, and Lucasfilm is no longer feasible, leaving the company to rely heavily on its existing franchises and sequels.
As children increasingly favor short-form YouTube videos over full-length episodes and movies, Disney's challenge is existential. Without rekindling the interest of the next generation, Disney risks losing its long-established dominance in the children’s entertainment market, which could impact other business areas such as theme parks and merchandise.
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Discussion (2)
As far as I'm concerned, this isn't bad news for the rest of the world, only Disney ;)
My nephews have Disney plus and rarely use it. I think the most used it gets a s when we want to find something for the entire family to watch. Otherwise they are glued to YouTube and Tiktok.