For more than 100 years, Disney has worked to build one of the most valuable content libraries in the world. From the first Oswald the Rabbit short to this summer’s “Toy Story 5,” the company has given audiences a veritable treasure trove of movies and TV shows to enjoy.
With its latest announcement, it seems Disney is determined to squeeze every last penny out of that enormous catalog of work.
The company recently announced a new “Throwbacks” campaign for Disney+ and Hulu that will give viewers the opportunity to return to some old-school favorites that have long been hard to find. The “Summer of Nostalgia” campaign comes as Disney works to strengthen the streaming arm of its operations — and it could be exactly the type of strategy investors have been waiting for.
Disney’s “Summer of Nostalgia”
“It’s time to rewind to the ‘90s and ‘00s,” Disney told viewers earlier this month.
Beginning May 22, Disney+ and Hulu are bringing back a selection of movies and TV series that defined the Disney experience for a generation of viewers.
The campaign will kick off with the return of the Throwback stream, a returning channel that runs an all-day marathon of the top 50 Disney Channel Original Movies (think “Cheetah Girls,” “High School Musical,” “Smart House,” and “Zenon: Girl of the 21st Century”). The channel will be supported by a Throwbacks Podcast, which gives fans a behind-the-scenes look at the making of some of these titles.
In addition to these season-long offerings, Disney+ and Hulu will be adding curated collections over the next few months, celebrating events like the 20th anniversary of titles like “Hannah Montana,” “The Devil Wears Prada,” and “Ugly Betty.”
And for the truly nostalgic viewer, the campaign will include some all-new content based on childhood favorites. “Camp Rock 3” is coming in August and a new season of “Wizards of Waverly Place” will drop at a yet-to-be-determined date.
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The financial power of nostalgic content
What makes this campaign particularly noteworthy for investors is not necessarily the titles that Disney is bringing back, but the strategy behind the “Summer of Nostalgia.”
Over the last couple of years, Disney has made it increasingly clear that its streaming services are one of its top priorities.
“We’re building Disney+ to serve as the immersive interactive digital centerpiece of the company,” CEO Josh D’Amaro told investors during the company’s second quarter earnings call in May.
So far, Disney has seen significant growth in the sector. At the close of Q2, the company reported that revenues from Disney+ and Hulu were up 13%, and operating income had increased by 88%.
But one thing that Disney (like every other streaming company) consistently struggles with is churn, or the rate at which customers cancel their memberships.
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As the prices of streaming services rise, many viewers have gone from keeping subscriptions running indefinitely to starting them only when there’s specific programming they want to catch, and then stopping them again afterward.
“Engagement, of course, is critical to reducing churn on the service,” D’Amaro told investors.
Which is where nostalgic programming comes in.
Classic content tends to drive higher engagement than one-off hit series, thanks to the emotional connection viewers form with it. Subscribers are more likely to maintain monthly memberships when a platform offers a deep catalog of familiar, comfort-viewing content rather than a small number of originals they have no existing connection to.
Some 60% of viewers report that their current favorite show is not something new, but an older show that has several seasons, according to a study by Hub Entertainment Research. Additionally, 11% of viewers say they spend the majority of their streaming time re-watching shows and movies they’ve seen before.
Unlike newer streaming competitors that must constantly create fresh franchises from scratch, Disney already owns decades’ worth of recognizable titles that come with built-in audiences. This makes it better positioned than most to cut down on churn.
For Disney, the “Summer of Nostalgia” campaign is about far more than revisiting ‘90s and ‘00s favorites. It’s a smart business strategy, based on the idea that one of the company’s greatest competitive advantages may be the stories audiences already know by heart.
Related: Netflix makes a big move into retail by reviving iconic candy line
