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Bargaining power of buyers

When buyers are mentioned here, then it will be the buyers of the products from Studio Entertainment segment of The Walt Disney Company. This will both represent the end buyers and viewers which watch the productions, but also the intermediaries, which are the large TV networks that stream the produced TV shows and movies around the world.

The products of the industry is on a yearly basis being judged by million of viewers around the world, and many TV programs and movies get international recognition through awards like the Emmy Awards and Academy Awards. These awards are partly what set the price towards the international TV networks. Because of the fact that these awards are an expression of the end users/viewers opinions and likes, and the TV networks need to attract viewers to watch their programs and thereby their advertisements or pay their special fees for watching their channels. Thereby they are largely focusing on having the best TV programs and movies, so they can attract viewers from the other channels. Thereby they are being forced buy the viewers to shop for programs and movies at specific entertainment producers. This gives the industry a good bargaining position for those that can present award winning shows, and a less good one for those who cannot.

When focusing on the viewers and general target audience for the productions, then they have a large selection to choose from, both when watching TV, going to the cinema or downloading something on the internet. Thereby they have the power of choice, which is an essential and important power. They have the selection on which things they want to experience, and thereby the industry is suffering from the ultimate mercy of the viewers, which in general is not that loyal to the companies, but only to the individual productions. Though is an exception the strong brands in the animation films, where there is a higher loyalty towards the companies and the brands behind them.