Hello Friends 👋🏾,

If you work on a high-growth product, there is one thing you love to see…a graph pointing up and the right. That means that the one thing you don’t want to see is a stale or declining growth chart.

Unfortunately, that has been the trend of Disney+ over the 6 quarters.

And the media & Wall Street have not been so kind to Disney+ throughout that period.

I think that sentiment is about to shift!

Why do I think so?

Disney+ ran many a/b tests over the past four months regarding messaging and differentiating its offering. Judging from these tests, it has found a winning formula for positioning and differentiating its offering from other streaming platforms. The numbers may just be lagging a little bit behind!

To better understand this point, let’s examine some of their positioning experiments over the past few months.
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Experiment 1: Emphasize Endless story headline

Date: December 2023

Changes:

• Change the font size headline

Experiment 2: BundleHeadline

Date: March 2024

Changes:

• Changed headline

• Removed entry price from footer text

Experiment 3: Bundle Header Image

Date: April 2024

Changes:

• Changed Disney+ logo to Hulu, Disney, and ESPN+ logos

Whenever I see the scope of experiments getting smaller and the experimentation timeline getting tighter, it's usually a sign that the company is in double-down mode.

If I were a betting man, I would say the Disney+ numbers will likely surprise Wall Street analysts in the upcoming quarters.

Talk soon,
Ali Abouelatta

(Not investment advice; just the observations of a lowly PM who thinks a lot about subscriber growth, particularly when it comes to packaging said subscriptions!)