EkaLore uses the term Alien Invaders to describe overwhelming competitors who disrupt industries by entering from a completely different industry space or Geo and breaking the “rules” that the industry typically follows. That can be devastating to the competition but often it’s great for consumers and buyers.
Previously, we’ve covered Disney as an Alien Invader – coming to the streaming content delivery space to disrupt traditional suppliers in cable, satellite, and Internet delivery. Marketing managers at Disney, and competitors, have opportunities in the misfortunes of retailers.
Opportunities include:
1) Lower costs of customer acquisition by packaging or bundling ‘deals’ for content with manufacturers that can showcase TV’s multiple manufacturers
2) Bundling deals (likely with some promotional fee or bundle splitting) with retailers to act as sales agents for content owners
3) Attacking competitors’ consumer bases and margins by substituting your product for theirs when consumer uptake is limited to the number of content services consumers are willing to continually purchase
4) Moving consumers from one-time purchase content (like DVDs or BluRay) to pay-per-view, rental, or subscription consumption
5) Moving more consumers from content distribution (and lower margins) to direct-to-consumer relationship models (reducing the economic power of distributors like cable/satellite/theaters)
6) Decreasing the costs per subscriber of large content production or distribution costs (like blockbuster movies, deals for event/sports, or narrow cast markets)
7) Accept some consumer churn in return for revenue/spend capture
Our post tomorrow will talk about how some hypothetical retail players might benefit from shifting from traditional ad spend to DisneyPlus and its competitors.
You can find the next post at www.ekalore.com/alien-invaders
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