The Walt Disney Company: The Perils of Streaming

內容大綱
In July 2021, Scarlett Johansson, the star of the Marvel Cinematic Universe (MCU) film Black Widow, sued The Walt Disney Company (Disney), the producer of the film, for breach of contract when it simultaneously released the movie in theatres and on Disney+, the company’s streaming platform, which resulted in a reduction of her compensation. The film saw a sharp drop in ticket sales in weeks two and three and ended its theatrical run with a much lower box-office take than many of the other MCU films. The lawsuit alleged that Disney’s vertical integration into streaming had caused a conflict of interest that had adverse consequences for talent compensation. Disney’s chief executive officer, Bob Chapek, was faced with the difficult decision of how to address talent compensation in light of streaming’s growing popularity, as Disney+ competed on the quality and availability of content.
學習目標
The case is best suited for courses in strategic management at the undergraduate and graduate levels. Most strategy classes focus on business strategy in the first half and corporate strategy in the second half; since vertical integration is a corporate strategy topic, the case is best used in the second half of the course. The expectation is that students will have been exposed to vertical integration and its related concepts prior to discussion of the case. After reading, analyzing, and discussing the case, students will be able to do the following:<ul><li>Understand the concept of vertical integration as it applies to a service provider.</li><li>Analyze the implications of expanding a firm’s boundaries.</li><li>Evaluate the options open to a decision maker considering the pros and cons of vertical integration.</li></ul>
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