It has been over a year since there was a company analysis episode on the show and they are coming back by popular demand! In addition to this episode about the happiest place (and perhaps the most magical company) on earth, there are behavioral economics analysis episodes on Apple Card, Costco, Peloton, and Starbucks (which quickly rose through the ranks to become the third most downloaded episode of all time) here on The Brainy Business. Links to all those (and so much more) below. Disney is such a massive company this episode could have gone in a lot of different ways (and I would guess it won’t be the last time you hear me talk about Disney on the show). Today is mostly focused on traditional Disney: amusement parks, movies, and a bit about Disney+. I’ll go through a whole bunch of concepts from behavioral economics that I see them using/leveraging in their work, and explain what you can learn from Disney in your business. Show Notes: [02:10] It is important to acknowledge that Disney is a massive organization with many, many facets and paths I could have taken this episode down. I would be willing to bet that there could be an entire podcast that is exclusively dedicated to the behavioral science of Disney and it would not run out of content.  [03:12] Knowing coronavirus has impacted their numbers, before the pandemic, they were reported as having 210,000 employees and revenue of about $60 billion. [03:23] That is before launching Disney+, which has been the most successful launch of a streaming service to date. In a little over a year, Disney+ is over halfway to being the largest streaming company in the world. [05:38] Their focus on innovation and always working to be better makes them stand out.  Among the 210,000 employees I mentioned earlier, there are over 20 behavioral scientists, along with hundreds of imagineers creating the amazing features and attractions around the parks and experiences throughout the world. [06:14] They have an incredible talent for balancing expectations with surprise and delight in this beautiful dance that works with the brain’s bias for the status quo. [07:11] If any of the things you expected of Disney were to change it would be a letdown and a negative experience. You would have negative dopamine because your expectations weren’t met and it can tarnish the brand. [07:57] These constant little tweaks and adaptations keep it fresh at Disney without being so different you lose the nostalgia factor and trigger ambiguity or uncertainty aversion. Enough remains the same to find that perfect balance of new and nostalgic. Because we have a bias for the familiar and love to share particularly great experiences with others, especially the next generation, it is important to keep some things static even over decades. [08:51] This embracing of nostalgia goes beyond the parks. Their movies and merchandise build on this concept as well. [11:12] Our brains love a little novelty and Disney incorporates theirs along with the IKEA effect. [11:36] Disney has little surprises throughout their parks. For example, the hidden Mickeys around Disneyland and Disney World–reportedly about 1000 per park. [12:19] Disney also does a great job of putting little “easter eggs” in their movies, particularly in its subsidiary brands. [13:36] Those little wins that help you feel smart also help you shape your experience with the brand. You look for little hidden gems and get to be part of the magic. [14:45] Being part of the fun and shaping the experience makes people like it more, and in Disney’s case, it is also a great way to sell lots of other merchandise. [15:57] Scarcity creates buzz and excitement, we herding humans love to follow the crowd and if we see some social proof that an item is popular AND in short supply we can’t help but get excited. [16:40] Having others spread the word about you and create their own fan version of your creations is another great reflection of how much people love Disney. [18:27] Real