Market Strategy Evolution and Business Model Transformation of

Marvel Studios: An Analysis Based on Porter's Five Forces Model

Siao Zhai

Faculty of Arts & Science, University of Toronto, Canada

Keywords: Marvel Studios, Superhero Films, Streaming Media, Media Transformation, IP Development.

Abstract: As a crucial component of the global film industry, superhero films have profoundly influenced contemporary

popular culture. Post-9/11 American society's collective desire for security and heroic archetypes catalyzed

unprecedented growth in superhero-themed media. However, while achieving periodic success, the Marvel

Cinematic Universe faces both internal and external industry challenges and pressure to transform its business

model. This paper employs Porter's Five Forces Model as an analytical framework and utilizes authoritative

institutional data to analyze Marvel Studios' market strategies over the two decades following Spider-Man's

2002 release. The research demonstrates that Marvel maintains its competitive advantage through several key

factors: the development of diverse characters and effective audience expectation management. In response

to streaming platform competition, Marvel's integration with Disney has strengthened its market position

through synergistic offline experiences and expanded distribution channels. The studio has controlled

production costs by experimenting with new film genres and casting new actors. In the post-pandemic market,

Marvel has adapted to new consumption scenarios by combining traditional theatrical releases with streaming

platforms. Furthermore, Marvel needs to increase investment in emerging technologies such as Virtual Reality

(VR) and Augmented Reality (AR) to address potential future challenges.

1 INTRODUCTION

On May 3, 2002, a New York high school student

named Peter Parker appeared on 7,500 screens across

North America, breaking records with an opening-

day box office of $43.62 million and reaching $100

million in its first weekend. The film eventually

became the highest-grossing release of the year.

Behind this success, Spider-Man reflected post-9/11

American society’s desire for security and individual

heroism. It told the story of an ordinary teenager

gaining extraordinary abilities and learning to

manage power while balancing social responsibility

with personal emotions and relationships. This film

portrays the transformation of an ordinary individual

into a superhero from the millennial generation's

perspective. In 2016, Marvel integrated Spider-Man

into their superhero universe, establishing a mentor-

paternal relationship with the franchise star Iron Man,

becoming a crucial link connecting different

superhero films.

Although Marvel's first comic book adaptation,

Blade (1998), achieved significant box office success,

audiences found deeper resonance with Peter Parker’s

struggles. His internal conflict between identity,

responsibility, and personal growth made the

character more relatable, attracting non-traditional

comic book fans. This humanized narrative not only

broadened the audience but also paved the way for the

release of subsequent films.

Today, Marvel films continue to serve as valuable

case in both commercial and cultural fields. This

paper focuses on the market strategies employed by

Marvel over the 20 years following Spider-Man's

release. It examines how Marvel managed its core

intellectual property (IP) to maintain continuous

growth in value, fostered fan engagement and

community interaction to enhance participation and

loyalty, and collaborated with media giants such as

Sony and Disney to expand product boundaries and

achieve cross-cultural reach. Additionally, it will

explore Marvel’s strategic adaptation in the post-

pandemic era, combining traditional cinema with

streaming platforms to respond effectively to

audience feedback.

The insights and recommendations presented in

this study aim to assist brand owners in formulating

comprehensive market strategies and making

informed business decisions at critical points within

the entertainment industry.

Zhai, S.

Market Strategy Evolution and Business Model Transformation of Marvel Studios: An Analysis Based on Porter’s Five Forces Model.

DOI: 10.5220/0014051700004942

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on Applied Psychology and Marketing Management (APMM 2025), pages 5-11

ISBN: 978-989-758-791-7

2 BRIEF HISTORY OF MARVEL

COMICS AND MARVEL

STUDIOS

Every successful Marvel character reflects the

prevailing themes of its time. Captain America,

introduced during World War II, symbolized

resistance against tyranny and the pursuit of peace

abroad, while embodying patriotic values and self-

sacrifice at home. In the 1960s, Stan Lee’s Fantastic

Four introduced the concept of a shared superhero

universe, reflecting Cold War-era ideals of scientific

exploration and teamwork. However, during the

1990s, the rapid expansion of Marvel’s comic book

catalog led to market saturation, causing company

financial difficulties. Marvel sold the film rights to

many of its key characters to Hollywood studios.

The 2000s marked a resurgence of these IPs

through the success of comic-based films such as

Blade, X-Men, and Spider-Man, bringing Marvel

characters back into public spotlight. The release of

Iron Man in 2008, which depicted the use of

technological innovation to combat terrorism,

mirrored contemporary societal concerns, particularly

Silicon Valley’s technological boom and the global

fight against terrorism in the Middle East (Yang and

Peng, 2022). In 2019, Avengers: Endgame served as a

culmination of Marvel’s narrative arc, integrating 20

years of storytelling into a unified cultural and

commercial milestone that elevated the Marvel brand

to unprecedented heights.

In response to the disruptions caused by the

COVID-19 pandemic, Marvel implemented strategic

shifts, exploring hybrid distribution models that

combined theatrical releases with streaming

platforms. This transition not only maintained

audience engagement but also expanded the acces-

sibility of Marvel content, paving the way for Phase

Four’s development across multiple media platforms.

3 THE ANALYSIS OF THE

MARVEL BRAND USING

PORTER’S FIVE FORCES

MODEL

3.1 Porter's Five Forces Model：An

External Analysis Tool for

Competitive Advantage

An enterprise's competitive advantage arises not only

from internal resources and capabilities but is also

profoundly influenced by the external industry

structure. In the 1970s, following the development of

SWOT analysis, Professor Michael Porter introduced

the Five Forces Model in 1979, grounded in the

“Structure-Conduct-Performance” (SCP) paradigm

of industrial economics. This analytical tool assists

firms in understanding the impact of five primary

competitive forces on their profitability, thereby

enabling systematic analysis of the external

competitive environment to identify strategic

opportunities that can enhance their competitiveness.

3.2 Industry Rivalry

As the production company behind Marvel films,

Marvel Studios has, since the release of Iron Man in

2008, produced a total of 31 films, creating the

Marvel Cinematic Universe (MCU). In 2009, Marvel

Studios was acquired by Disney for $4.2 billion.

Leveraging Disney’s expansive distribution network,

Marvel rapidly dominated the superhero film niche

market. Today, Marvel has almost become

synonymous with superhero movies.

Marvel’s primary competitor within the superhero

domain is DC Comics. Founded in 1934, DC Comics

initially captured the American public's imagination

with the character "Superman," establishing the

archetype of a superhero. Marvel, meanwhile,

capitalized on the sociopolitical climate of World

War II by introducing "Captain America," gaining

widespread recognition. In 1969, DC Comics was

acquired by Warner Bros., which took responsibility

for adapting and distributing its intellectual

properties. However, it was not until 2013, following

the completion of the first phase of the MCU, that

Warner Bros. released Man of Steel, the inaugural

film in the DC Extended Universe (DCEU), which

grossed $670 million worldwide (Qi, 2024). By this

point, Marvel had already laid the groundwork for the

Avengers storyline through seven films featuring

characters like Iron Man and Captain America.

Although DC and Marvel each have unique

characteristics and audiences in comic creation, DC's

adaptations into films gained fame and achieved

success later than Marvel's.

To compete effectively, Warner Bros. adopted a

differentiated competitive strategy for DC. From a

character development perspective, DC focused on

crafting powerful, godlike characters and exploring

philosophical themes such as sacrifice and justice

through human conflict, thereby appealing to an adult

audience. However, the grand narrative may, to some

extent, make the characters feel distant to audiences,

making it challenging for them to empathize with the

APMM 2025 - International Conference on Applied Psychology and Marketing Management

characters. Conversely, Marvel emphasized themes

of resilience, teamwork, and everyday challenges

faced by families and adolescents, resonating with a

broader demographic. As a market pioneer, Marvel

established a lighthearted and humorous style for

superhero films. Although unique, the dark and

serious tone of DC films does not appeal to audiences

who seek purely entertainment from movies, thereby

limiting the audience base for DC films (Qi, 2024).

In terms of cinematic style, Warner Bros grants

directors’ greater creative freedom, with Zack

Snyder’s serious style and James Gunn’s

entertainment style successively shaping the

development of the DC Extended Universe (DCEU).

This has led to significant stylistic differences across

films, affecting the coherence of the series. Under

Kevin Feige’s centralized management, Marvel

maintained a cohesive visual aesthetic to ensure

consistent character portrayals within its cinematic

universe. This coherence in visual and narrative

elements allows for smoother character and plot

development, strengthens brand recognition and

loyalty, and sets clear expectations for future

installments, helping attract a stable audience and

boosting box office performance.

DC often relies on director interviews and behind-

the-scenes documentaries to attract fans by offering

insights into the creative process, reinforcing the

importance of directors within the franchise and

fostering fan loyalty. In contrast, Marvel uses post-

credit scenes to spark discussions about upcoming

storylines, generating secondary promotion on social

media. This approach not only builds interest in future

films but also effectively manages audience

expectations and encourages broader engagement.

The differences in box office performance

between Marvel and DC can be attributed to their

varying approaches in four key areas: market entry

timing, film style and tone, director creative control,

and audience expectation management. As of October

31, 2024, the Marvel Cinematic Universe has

achieved a total box office gross of $30.8 billion,

while the DCEU has earned $6 billion (see Fig. 1). By

leveraging its first-mover advantage, straightforward

and coherent storytelling, and extensive marketing

reach, Marvel has attracted more substantial audience

base.

Figure 1. DCEU and MCU1 Monthly Box Office Earnings

by Release Date (Photo/Picture credit: Original). Note: Box

office data sourced from Box Office Mojo.

3.3 Threat of New Entrants

Streaming services offer a convenient viewing option,

allowing audiences to watch the latest films at home

at any time, leading to a diversion of cinema

audiences and a decline in box office revenue, which

is particularly impactful for blockbuster studios like

Marvel that rely heavily on box office earnings. The

growth of streaming has also driven a reduction in

theatrical release windows and shifted consumer

behavior, as viewers have become accustomed to

accessing new films quickly through a subscription-

based content library, without needing to monitor

theater schedules or seating availability.

Additionally, streaming platforms leverage big data

analytics to accurately gauge audience preferences,

enabling them to respond to market demand more

swiftly than traditional production companies.

In the wake of the pandemic, tech giants from

Silicon Valley have increasingly ventured into the

media landscape by promoting and developing their

streaming platforms. Amazon’s Prime Video, for

example, launched The Boys in 2019, a series that

quickly became the platform's most-watched show

thanks to its anti-hero narrative and darkly satirical

tone. Season two in 2020 saw an 89% increase in

viewership, while seasons three (2022) and four

(2024) achieved 17% and 21% growth respectively,

substantially boosting the platform's paid

subscription base.

Netflix took a different approach, collaborating

with Marvel to release street-level superhero series

such as Daredevil and Jessica Jones. Daredevil's third

season recorded approximately 30 million hours of

view time in its debut week, while Jessica Jones's first

season amassed 20 million hours.

Unlike traditional film studios, streaming

platforms are free from cinema screening costs and

schedule constraints, offering users a wider variety of

content choices. Digital distribution eliminates the

Market Strategy Evolution and Business Model Transformation of Marvel Studios: An Analysis Based on Porter’s Five Forces Model

need for physical media transportation and reduces

promotional expenses. Platforms also have access to

user data, including Viewing Behavior Data and

Content Performance Data which helps in directing

content development and enables targeted

advertising, particularly on social media, reducing

marketing expenses eventually (Ulker-Demirel et al.,

2018). Additionally, the subscription model provides

a stable cash flow, freeing content creators from the

need to rely on single blockbuster successes. A

diversified content library helps mitigate risks

associated with underperforming titles. In 2021,

Marvel released the film Black Widow

simultaneously in theaters and on the Disney+

streaming platform as an exploration of a new

distribution model and a response to new entrants in

the industry.

3.4 Supplier Bargaining Power

In Marvel's production budget, director and actor

salaries constitute a substantial portion. The

production cost for Avengers: Endgame was

approximately $356 million, with salaries for actors

and crew members totaling $175 million,

representing 49% of the overall cost. Robert Downey

Jr., who played Iron Man, earned around $75 million

in pay and profit-sharing for Endgame, a stark

contrast to his initial $500,000 salary for the first Iron

Man film in 2008 (Ulker-Demirel et al., 2018). The

film required over 3,000 Visual Effects (VFX) shots,

necessitating the involvement of 12 VFX companies

and thousands of artists. According to a report by

Mordor Intelligence, the global VFX market size is

projected to reach $179.78 billion by 2024 and

$311.46 billion by 2029 (data from Mordor

Intelligence), with an annual growth rate of 9.43%.

For Marvel, this indicates a significant increase in

production costs.

Fortunately, Marvel still holds numerous high-

value character rights and has reached a mutually

beneficial agreement with Sony, the rights holder for

Spider-Man, allowing both parties to capitalize on the

character's exposure and brand value.

3.5 Bargaining Power of Buyers

The rise of streaming platforms has shifted the

landscape, with theaters no longer serving as the

exclusive venue for blockbuster releases. However,

for Marvel films, theaters offer more than just an

immersive viewing experience; they provide social

and interactive elements as well. According to the

2023 Theatrical and Home Entertainment Market

Environment Report released by the Motion Picture

Association (MPA), total theatrical admissions in the

United States and Canada reached 850 million in

2023, representing a 30% increase from the 650

million admissions recorded in 2022. However, this

figure remains below the 1.3 billion admissions seen

in 2019. In 2023, the average number of films

watched per person was four, an increase from 3.2 in

2022, but still lower than the 4.6 average in 2019.

This data suggests that, while the pandemic has

altered the viewing habits of some audience

members, the rate of recovery is accelerating.

Nevertheless, theaters continue to rely on blockbuster

films to support rising labor and rental costs, a

pressure that has led owners to increase ticket prices,

thereby impacting the willingness of price-sensitive

audiences to step into theaters. From 2019 to 2023,

the average ticket price for Marvel movies in the

United States has steadily increased (Tu, 2016).

Notably, in 2023, the average ticket price for Ant-

Man and the Wasp: Quantumania reached $13.89,

marking a 15.4% increase compared to the 2019 price

of $12.04. In the short term, rising ticket prices may

lead to a decline in the number of moviegoers, while

in the long term, this trend could suggest a shift in

viewing habits, encouraging audiences to subscribe to

streaming platforms.

Audience feedback through reviews, social

media, and word-of-mouth has become increasingly

influential on a film’s revenue. According to the 2021

Chinese Film Audience Survey published by China

Film News, 61.4% of moviegoers primarily obtain

film information through short video platforms such

as Douyin and Kuaishou. Additionally, 51.4% use

ticketing platforms like Maoyan and Taopiaopiao for

film-related information, while 48.7% rely on social

media platforms such as Weibo and WeChat.

Audiences are increasingly placing value on a film's

reputation, pre-selecting content by their interests.

Audience feedback circulates widely on the internet,

impacting both the box office performance of films

and the long-term value of intellectual property (Su

and Su, 2020). Film distributors must consider how to

understand user preferences in order to develop

targeted marketing strategies.

Influencers, whether serving as information

sources or engaging in secondary creative content, are

effective in attracting their respective audiences to

movies. Prior to the release of Avengers: Endgame,

Marvel collaborated with numerous prominent

influencers, inviting them to attend premieres and

behind-the-scenes events. These influencers shared

their experiences on social media, boosting audience

anticipation. However, when influencers provide

APMM 2025 - International Conference on Applied Psychology and Marketing Management

negative reviews, the negative discussions on social

media can diminish audience expectations,

potentially leading to a decrease in box office

revenue (Zhang, 2023).

3.6 Threat of Substitutes

Within the industry, DC Extended Universe (DCEU)

poses the most significant threat to Marvel, with

iconic characters such as Batman and Superman

possessing immense IP value. DCEU films like

"Aquaman" and "Joker" have achieved remarkable

global box office success, grossing $1.148 billion and

$1.074 billion respectively. Additionally,

independent superhero movies like the "Hellboy"

trilogy from Dark Horse Comics have earned $303

million in total, potentially diverting Marvel's

audience.

Outside the industry, science fiction films such as

"Star Wars" and "Avatar," as well as fantasy films

like "The Lord of the Rings" and "Harry Potter," serve

as substitutes for Marvel movies, boasting vast and

unique worldviews and stunning visual effects

(Richter, 2016). Furthermore, action-oriented film

series like "Mission: Impossible" and "Fast and

Furious" along with high-budget historical dramas

and disaster movies, also compete for audience

attention.

Looking to the future, Virtual Reality (VR) and

Augmented Reality (AR) technologies present

challenges to the traditional film industry in terms of

content creation and presentation. By wearing

specialized devices, users can immerse themselves in

virtual environments and actively interact with the

content, offering an unparalleled sense of presence

that traditional cinema screens cannot match (Junius,

2015). Other studies also emphasize the importance

of VR technique in marketing and film industry

(Wijayanto and Putra, 2021 & Talafubieke et al.,

2021). This poses a particular challenge for Marvel

movies, which are known for creating visual

spectacles on screen. As hardware costs decrease and

5G technology advances, new content based on VR

and AR will continuously emerge. According to a

report by market research company Grand View

Research, the global VR device market size reached

$7.9 billion in 2021, and the global VR and AR

device market is expected to reach $127.4 billion by

2028, potentially becoming the next major content

platform after PCs and smartphones.

4 RECOMMENDATIONS FOR

STRENGTHENING MARVEL’S

COMPETITIVE POSITION

USING PORTER’S FIVE

FORCES

4.1 Industry Rivalry

Following the conclusion of Avengers: Endgame,

Marvel has continued to introduce films such as

Shang-Chi and the Legend of the Ten Rings and

Eternals, portraying the growth of a new generation

heroes and laying the groundwork for subsequent

explorations of the multiverse concept. Concurrently,

Marvel has launched series like Wanda Vision, Loki,

and The Falcon and the Winter Soldier on Disney+,

allowing for a deeper exploration of existing

characters. In support of the multiverse-focused

storyline in Phase 5, Marvel has committed to

releasing numerous films and series annually,

integrating the storylines of both new and legacy

characters, and anchoring them within larger

crossover events, thereby aiming to replicate the

success of the Avengers franchise.

On the one hand, Marvel needs to delve deeply

into the internal conflicts and growth of its characters,

crafting more complex personalities to foster

audience empathy. Emphasis could be placed on

minority, female, and LGBTQ+ characters to broaden

the appeal and attract diverse audience. On the other

hand, Marvel should expedite the release of films that

serve as pivotal “node” events, like The Avengers, to

unify its characters and deliver impactful “ensemble

moments” that heighten audience anticipation for

future multiverse developments.

4.2 Threat of New Entrants

Disney’s collaboration with Marvel primarily

manifests in resource integration and platform

support. Disney’s substantial financial power ensures

the high-quality production of Marvel content and

enables the creation of themed experiences like the

Avengers Campus in California, which enhances fan

engagement and expands the offline retail channels

for merchandise. Through annual events such as D23

and theme park interactions, Disney strengthens fan

engagement and boosts anticipation for Marvel’s

films and series. The synergy between online and

offline experiences amplifies the brand’s reach and

recognition. In contrast, platforms like Amazon and

Market Strategy Evolution and Business Model Transformation of Marvel Studios: An Analysis Based on Porter’s Five Forces Model

Netflix primarily rely on online marketing, lacking

the immersive experience and emotional connection

provided by offline settings.

4.3 Supplier Bargaining Power

Introducing capable new actors not only appeals to

audiences across age groups and cultural

backgrounds, as seen with the Asian creative team

behind Shang-Chi and the Legend of the Ten Rings,

and the character Kamala Khan in Ms. Marvel, which

resonates with young viewers from Muslim

backgrounds. It also aids in controlling production

costs, as these actors are likely to appear in multiple

upcoming movie series.

4.4 Bargaining Power of Buyers

Furthermore, Marvel recognizes the value of

influencer marketing in its promotional campaigns.

By collaborating with influencers whose followers

align with the film’s target audience, Marvel can

precisely reach viewers of specific ages, interests, and

regions. Influencers’ previews or analyses of movie

trailers can foster curiosity, and personal

endorsements are more likely to elicit positive

attitudes toward the film watching. Such marketing is

generally cost-effective and benefits from the high

engagement and trust that influencers’ followers

have.

4.5 Threat of Substitutes

In terms of media formats, VR and AR possess the

potential to partially replace the visual and auditory

experiences offered by Marvel’s film and streaming

content, due to their immersive nature, interactive

features, and robust storytelling capabilities.

Although there are currently no comparable

competitors in the market, Marvel Studios could

explore the development of interactive content for VR

and AR devices, establishing an early presence in

these sectors.

5 CONCLUSION

This study examined Marvel Studios' market

strategies over two decades through Porter's Five

Forces analysis framework. The research

demonstrates Marvel's successful evolution from a

comic book company to a global entertainment

powerhouse, achieved through strategic intellectual

property management, innovative distribution

models, and adaptive market positioning.

The findings illuminate several critical factors

affecting Marvel's market position. First, Marvel's

competitive advantage over DC originates from its

early market entry and narrative consistency, which

fostered robust brand recognition and audience

loyalty. Second, the emergence of streaming

platforms presents substantial challenges to Marvel's

conventional theatrical distribution paradigm. Third,

escalating production costs are driven by premium

actor compensation and increasing dependence on

sophisticated visual effects technology. Fourth, the

post-pandemic theatrical sector maintains

considerable bargaining power, while the influencers

wield substantial impact on film reception.

Additionally, technological advancements in VR and

AR potentially offer immersive experiences that

could surpass traditional theatrical superhero film

presentations.

Based on these findings, several strategic

recommendations emerge for entertainment industry

stakeholders. Companies should prioritize diverse

character development to broaden audience appeal,

implement strategic release timing to maximize

market impact, and explore emerging technologies

like VR and AR to stay ahead of technological

disruption.

This research contributes to the broader

understanding of entertainment industry dynamics

and provides valuable insights for media companies

navigating similar challenges in intellectual property

management and market adaptation. Future research

could explore the long-term implications of streaming

platforms on traditional theatrical distribution models

and the potential impact of emerging technologies on

content creation and consumption patterns.

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Market Strategy Evolution and Business Model Transformation of Marvel Studios: An Analysis Based on Porter’s Five Forces Model