Get ready to start shelling out for another monthly subscription video service.
Disney’s forthcoming new subscription streaming service, Disney+, generated strong interest from surveyed potential customers, providing the price is right, according newly released research conducted by The Diffusion Group.
TDG’s eighth annual “Video Behavior in the Age of Quantum Video,” survey of U.S. connected consumers, found the direct-to-consumer (DTC) subscription over-the-top (OTT) streaming service, received strong interest among surveyed adult broadband users when asked their likelihood to sign up for “a Netflix-like service from Disney.”
Disney has been stockpiling rights to a large library of movies and television programs that will be available exclusively on the new service. It has also started pulling the rights to its own content from soon-to-be Subscription Video on Demand (SVoD) competitors like Netflix in order to lock up exclusive access.
When it launches, Disney+ will have the largest collection of Disney TV shows for children.
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Disney owns or controls the rights to a diverse range of libraries from such entities as Disney, National Geographic, Pixar, and Marvel (including Star Wars movies). It is also expected to add the rights to various 20th Century Fox properities through its recent acquisition of that studio.
Disney+ is also expected to have an assortment of original shows and movies.
The Diffusion Group study said survey respondents “were randomly assigned one of three price points for the service, either $5.99, $7.99, or $9.99 per month. On average, 43% of adult broadband users are to various degrees likely to sign up, 27% moderately or highly likely to subscribe.”
“Based on our research, Disney+ will enjoy strong early demand,” stated Michael Greeson, TDG President, in a announcement of the research. “The amount of high-quality content being packed into the offering will make it not only appealing, but very sticky.”
TDG called Disney+ “a major test for the direct-to-consumer model, as it differs from both subscription aggregators like Netflix and streaming ‘channels’ like HBO Now.”
“This is a major studio pooling what is arguably the largest library of high-value content on the planet to populate a single-branded subscription service,” said Greeson.
Notably, to further fortify the service, Disney is pulling select content from third-party SVOD providers like Netflix, suggesting a tribalism of sorts, with big-name studios reserving their best content for their own DTC services. As such, Disney+ will be under a microscope; a running case study of what DTC can be, and a real-time measure of what impact, if any, such tribalism may have on the value chain.
While Disney+ appeals to a wide range of consumers, interest varies within several key segments. For example:
Among the findings, the study revealed:
Legacy pay-TV subscribers are more strongly interested in Disney+ than both cord-nevers and cord-cutters;
Hulu subscribers are more likely to sign up than are Prime Video and Netflix subscribers;
Those under the age of 35 are twice as likely as their older counterparts to be strongly interested in Disney+, as are those with children under 18 living in the home.
By Greg Tarr
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