{"id":9861,"date":"2019-11-13T07:41:08","date_gmt":"2019-11-13T12:41:08","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/big-data-behind-disney-magic\/"},"modified":"2019-11-13T07:41:50","modified_gmt":"2019-11-13T12:41:50","slug":"big-data-behind-disney-magic","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/big-data-behind-disney-magic\/","title":{"rendered":"Big Data Behind Disney Magic"},"content":{"rendered":"

Big Data at Disney: Introduction<\/strong><\/p>\n

Disney is a diversified global entertainment company best known for its high-quality, family-oriented films and theme parks.\u00a0 While Disney is relatively less known for its commitment to using advanced analytics (likely because the company aims to conceal \u201cthe mess behind the magic\u201d), Disney has quietly been investing in big data applications for a decade (1).\u00a0It is estimated that Disney has about 1,000 full-time employees dedicated to building advanced analytics capabilities (2).\u00a0 Interestingly, the organization has nurtured an experimental approach to analytics.\u00a0Teddy Benson, Head of Solution Integration at Disney, explained: \u201cwe do proofs of concept almost like startups\u2026 we take a small budget and look at the risk, do a few investments with various levels of success and see how far we can get\u201d (2).\u00a0 Still, there is evidence that Disney is willing to \u201cbet big\u201d on data solutions that can facilitate exciting, frictionless and personalized experiences for its customers.<\/p>\n

Below are three known examples of big data usage at Disney, across its business segments.<\/p>\n

Optimizing Park Logistics: MagicBands<\/strong><\/p>\n

\"\"<\/a>In 2013, Disney released its \u201cMagicBand\u201d concept at the Walt Disney World Resort in Florida \u2013 a program that reportedly cost Disney over $1B to develop and implement (1).\u00a0 Today, every single guest of the Resort receives a wearable MagicBand bracelet that includes an RFID chip.\u00a0 The device serves a range of purposes from the customer\u2019s perspective. \u00a0It functions as the hotel room key, provides access to the various theme parks, and allows guests to make convenient payments (charged back to their hotel room).\u00a0 \u00a0More importantly, the bracelet constantly communicates with sensors spread throughout the parks, generating huge amounts of data around the movements of each individual customer.\u00a0Disney\u2019s operations team already uses this data to dynamically improve customer experience.\u00a0 The data might reveal, for example, that a set of customers is waiting in a long line for a ride.\u00a0 Disney\u2019s team can offer up real-time incentives to redirect those customers to less congested areas of the park (3).\u00a0 There is huge value created by optimizing park logistics in this way \u2013 customer satisfaction grows and resources can be used more efficiently.\u00a0Further, this wealth of data could allow Disney to develop all kinds of innovative park features.\u00a0 Analysts speculate that in the near future, Disney will be able to do things like predict a child\u2019s favorite character (Cinderella, Mickey Mouse, etc.) based on how the child behaves in the park, and arrange for that character to locate and surprise the child for an unforgettable meet-and-greet (4).<\/p>\n

Optimizing Ticket Pricing: Lion King on Broadway <\/strong><\/p>\n

The unprecedented success of Lion King on Broadway reflects another noteworthy case where Disney harnessed big data effectively.\u00a0 The show has generated more ticket revenue (about $8B) than any <\/em>other Broadway show, and yet its ticket prices have never been the highest on average (5, 6). This success can be attributed, in part, to the dynamic pricing model that Disney developed for the show tickets.\u00a0 Disney used historical Broadway ticket sales data to accurately forecast future demand for Lion King.\u00a0 The model they developed also predicted the highest possible price for each ticket that customers were likely to accept (7).<\/p>\n

Optimizing Film Production: Affective Artificial Intelligence (AI)<\/strong><\/p>\n

\"\"<\/a>When Disney produces films or television shows, an important step in the process is testing market fit.\u00a0Before big data, Disney Studios would preview early cuts of its content for focus groups, and try to extrapolate from that group\u2019s feedback how a larger audience might respond.\u00a0 The process was tedious and error-prone.\u00a0 Now, Disney is creating technology to make these market fit tests faster and more accurate.\u00a0Specifically, Disney has been an early adopter of Affective AI, an area of computing focused on identifying and interpreting human emotions. \u00a0A recent research paper published by Disney and Caltech described placing cameras in a movie theater to monitor each face in the audience.\u00a0Backend systems could then evaluate the audience\u2019s emotional response to each moment of early-cut content screening. This method generates significantly more granular data than before (about 5K data points per person during an average movie) (8).\u00a0 Disney scientist Peter Carr explains, \u201cit\u2019s more data than a human is going to look through. That\u2019s where computers come in \u2013 to summarize the data without losing important details\u201d (9).\u00a0 In the future, Disney could use big data and affective AI technology for other purposes.\u00a0 For instance, to understand how customers are feeling as they move through its theme parks.\u00a0 Or, even to select in real-time between multiple possible endings to a film, based on predictions about what the audience will most enjoy (8).<\/p>\n

Potential Challenges<\/strong><\/p>\n

\u00a0<\/strong>With its customer-centric big data solutions, Disney will need to be very mindful of customer privacy.\u00a0 Already, with MagicBands, Disney collects the consent of its customers before it tracks their movements within the park. \u00a0Some have speculated, though, that Disney customers will be more tolerant of the \u201cconvenience-surveillance\u201d tradeoff given their longstanding trust in the brand.\u00a0 Disney World, for example, is \u201cwrapped in an idealized vision of life that\u2019s as safely self-contained as a snow globe.\u00a0 Disney is thus granted permission to explore services that might seem invasive anywhere else\u201d (1).<\/p>\n

Do you agree?\u00a0 Will Disney receive an unusual amount of leeway to collect and analyze customer data?\u00a0 Or will customers eventually push back, finding these data-driven solutions unsettling?<\/p>\n

 <\/p>\n

    \n
  1. https:\/\/www.wired.com\/2015\/03\/disney-magicband\/<\/a><\/li>\n
  2. https:\/\/www.computerweekly.com\/news\/252439803\/Doing-analytics-the-Disney-way<\/a><\/li>\n
  3. https:\/\/www.nytimes.com\/2013\/01\/07\/business\/media\/at-disney-parks-a-bracelet-meant-to-build-loyalty-and-sales.html?utm_source=datafloq&utm_medium=ref&utm_campaign=datafloq&pagewanted=2&_r=0<\/a><\/li>\n
  4. https:\/\/www.forbes.com\/sites\/bernardmarr\/2017\/08\/24\/disney-uses-big-data-iot-and-machine-learning-to-boost-customer-experience\/#50bdbd443387<\/a><\/li>\n
  5. https:\/\/www.forbes.com\/sites\/leeseymour\/2017\/12\/18\/the-lion-king-is-making-more-money-for-disney-than-star-wars\/#1824a2e11ff0<\/li>\n
  6. https:\/\/www8.gsb.columbia.edu\/bizanalytics\/content\/why-\u201c-lion-king\u201d-roars-so-loud-business-analytics-disney<\/a><\/li>\n
  7. https:\/\/www.computerweekly.com\/news\/252439803\/Doing-analytics-the-Disney-way<\/a><\/li>\n
  8. https:\/\/www.fastcompany.com\/90134144\/disneys-next-movie-it-could-be-watching-you<\/a><\/li>\n
  9. https:\/\/www.caltech.edu\/about\/news\/neural-networks-model-audience-reactions-movies-79098<\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

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