Rapid TV News - Young consumers register big interest in Disney+
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A report from Hub Entertainment Research has found that nearly half of young consumers and those with kids in the household say they’re likely to sign up for Disney+ and, hugely significantly, subscriptions will likely be strong among current Netflix subscribers.
Hub research Disney 29Oct2019
The Conquering Content study measured subscription likelihood for four upcoming TV streaming services: Disney+ and Apple TV+ which are set to launch in November, plus HBO Max and NBC’s Peacock both slated for 2020. The study was conducted in August 2019 among 2,016 US consumers with broadband, who watch at least 1 hour of TV per week.

It found that consumers were more likely to have heard of Disney+ than the other upcoming services. Of the two services launching next month, nearly three-fifths have heard of Disney+, while about half have heard of Apple TV+. With admittedly fewer announced details about the services which have longer-away launch dates, awareness of WarnerMedia’s HBO Max and NBC’s Peacock was lower: about a quarter of the sample have heard of each.

After hearing the price for the standalone service, one in four TV consumers say they’ll sign up for Disney+, including 15% of TV consumers who say they’ll definitely sign up or have already pre-ordered the service, and another 9% who say they’ll probably subscribe. These fall to 6% definitely for Apple TV+ and 10% probably after hearing its proposed price, including the offer of a free subscription with the purchase of certain Apple products. Subscription intention was lower still for HBO Max and Peacock.

Looking at age demographics, nearly half of consumers age 16-34 say they’re likely to sign up, including 31% who say they’ll definitely subscribe or have already done so. Two-fifths of households with kids say they’ll definitely or probably subscribe, including 26% saying definitely or have taken advantage of the pre-order.
Subscription likelihood was also higher than average among current Netflix subscribers, with 21% saying definitely/have pre-ordered, and another 12% saying probably. The $12.99-per-month bundle of Disney+, Hulu, and ESPN+ generated even stronger interest, including a full 46% of 16-34 year olds who say they’ll definitely or probably sign up.

In what Hub said was a somewhat ominous finding for existing services: a full two-thirds of those likely to sign up for any of these services say they’ll drop something they have today. That includes 29% who say they’ll drop an existing service right away, plus 37% who say they’ll eventually drop services once they’ve determined which are their favourites.

“Our other research has shown that when it comes to TV subscriptions, many consumers are at zero-sum status—anything new they add will be at the expense of something they have currently,” said Peter Fondulas, principal at Hub and co-author of the Conquering Content study.  “As we saw in our Decoding the Default study, the platforms most likely to survive the new service onslaught are those that offer popular shows that one can’t watch anywhere else, and that make it easy to discover those can’t-miss shows.”