EA to strengthen its partnership with Disney and utilize its business model in gaming

Electronic Arts (EA) CEO Andrew Wilson recently discussed the potential of utilizing the business model of Disney and stated that Disney has the idea of building a flywheel of experiences around core IP. The CEO thus highlighted an intent to bring together the same model in the gaming sector.

EA CEO believes that gaming has some of the big IPs on the planet and that more projects can be done around them

What Disney does is, make use of the big names that they have in their arsenal and they use them as a flywheel for future projects around them. This not only gives their projects momentum but also helps them market well in the industry. According to seekingalpha, the CEO stated at a Q&A session for the Goldman Sachs Communacopia + Technology Conference that EA can apply the business model of Disney in the IPs that the publishers already have and build some more projects around them.

EA business model Disney,
Image via Unsplash

Disney has flywheel which includes movies and TV, but it also expands well beyond that with the likes of Disney’s theme parks, merchandise, and much more. Similarly, Andrew Wilson believes that EA can apply the same model in some of the big IPs that they own. Wilson quoted “If you stop now and fast forward, the biggest IPs on the planet actually are video game IPs. If we look at Apex or The Sims, we have hundreds and hundreds of millions.” 

This specific business model of Disney helps the fans to connect with the IPs outside of the base game, thus helping in building a larger community for the fans and players to engage in. EA will be aiming for something similar and help themselves create a larger community based on the business model. Not only will this widen their reach but will also pose more opportunities for them to expand their business.

Major IPs of EA like FIFA or Apex Legends draw their cultural power from the discussions that the players and fans do and the videos related to those IPs that the players stream. Wilson further quoted “Of our 700 million people in our network about half of them are deeply engaged in user-generated content. So this is a big part of the engagement flywheel for our future. So in the old world, play was for five weeks, it was offline. It was a single-player. We made it multi-play, we took it online, and you now play 365 days a year. What you’re going to see from us is really double down and reallocate investment towards these 5 or 6 massive global online communities that we have the benefit of growing.”

EA business model Disney
Image via Unsplash

The publishers, EA already have a great relationship and partnership with Disney and have worked together on some of the bigger IPs in the past like the Star Wars games. With this being said, the publishers will definitely be aiming to utilize their partnership and infuse the successful business model of Disney in the gaming sector.

What are your thoughts on EA trying to replicate the business model of Disney? Let us know in the comments below!

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