Disney+ adoption skyrockets as Netflix maintains grip on streaming | Ratings/Measurement | News | Rapid TV News
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A survey from Parks Associates looking at the uptake of new over-the-top and on-demand services has revealed that only months into their commercial lives, Apple TV+ and Disney+ have already captured significant market share, rounding out the top five behind the Big 3 of Netflix, Amazon Prime Video and Hulu.
apple tvplus 29Jan2020
The research firm’s Market Snapshot: Disney+ and Apple TV+ surveyed more than 10,000 consumers between 8 March and 3 April to heads of broadband households, after the Covid-19 crisis had begun in the United States, looking at the impact of the entry of the new direct-to-consumer services including insights into the factors driving their growth.

The report found that Disney+ has skyrocketed to 25% adoption among US broadband households after just six months in the market. Apple TV+, which launched around the same time, has reached nearly 10% adoption. Disney+ and Apple TV+ are fourth and fifth, respectively, among SVOD services adopted by consumers. Just more than four-fifths of Disney+ customers subscribes to Netflix, as do 72% of Apple TV+ subscribers.

Nearly half of Disney+ subscribers cancelled another OTT service over the last 12 months, as did roughly two-thirds of Apple TV+ subscribers. The study added that Disney+ also benefited from promotions such as the introduction of the Disney+/Hulu/ESPN+ bundle and its partnership with Verizon where unlimited mobile subscribers and new internet subscribers get a free year of the service.
On a general point, nearly a third of broadband households reported their use of online video services has increased because of the Covid-19 outbreak.

“Disney took a broad-based content approach to its Disney+ service, including its Pixar, Stars Wars, Marvel, Nat Geo, and 20th Century Fox properties to make it broadly appealing, far beyond its traditional audience of families with young children,” said Steve Nason, research director, Parks Associates. “Very few Disney+ subscribers subscribe only to this service, so households are not picking up Disney in place of another service but adding to their home’s other OTT services. We will see, as household budgets tighten up, if Disney+ has done enough to become an ‘essential service’ for its subscribers.”

As regards Apple TV+, the survey noted that the service originally promoted a small stable of original programming and was now looking to supplement that with more third-party content. Furthermore, the Market Snapshot: Disney+ and Apple TV+ report said that the service’s growth was due largely to a free year of service for those who recently purchased an Apple device.

“Apple TV+ does have a higher percentage of exclusive non-Netflix subscribers, plus a higher number of households that recently cancelled another OTT service, so it appears Apple does have a core group of dedicated subscribers. Apple’s challenge is to expand beyond that group,” Nason concluded.