Disney+ added more than 14 million subscribers in the second quarter.
Sorry, NetflixNFLX
It’s a ‘you’ problem, not a ‘we’ problem.
When Disney said on its earnings call earlier this week that Disney+ had seen another massive gain in subscribers in the same quarter that Netflix lost nearly a million, it became clear that the churn issues affecting that streaming service may not be an industry problem. They can be a problem unique to Netflix.
And maybe that streamer can learn a few lessons from Disney. In addition to profits from Disney+, which has added 14.4 million subscribers as of April, Disney properties Hulu and ESPN+ also saw significant increases. The three combined now have 221.1 million Netflix subscribers 220.67, surpassing its rival for the first time (although Disney bundles its three services and each subscription counts as one subscription).
1. People Want the Biggest Bang for Their Buck
Here are five takeaways from Disney‘s recent success — and how that could impact the streaming landscape.
2. Streamers Are All-In on Ad-Supported Platforms
The bundle option is crucial. At a time when inflation is causing pricing problems, consumers can pay several dollars less per month for three Disney streaming services than the HD price for Netflix. On the same subject : Netflix will miss key shows at an embarrassing time. That’s more choices to appeal to more people in the household, and it probably means people can cancel other services by bundling Disney’s more affordable services. To note, Discovery just announced plans to merge Discovery+ and HBO Max into one, though other business synergies are also playing a part in that decision.
3. Carving Out Niches Helps
See ‘saving money’ above – while the luxury of watching TV without ad was certainly a huge draw in the early days of streaming, in recent years consumers have become more tolerant of watching ads. Both Disney and Netflix plan to introduce ad-supported platforms next year, which will drive prices down for subscribers. This may interest you : Netflix is trying to keep its latest subscribers. Again, inflation has sparked an interest in saving money, and services that meet that need will thrive.
4. Sports Matter a Lot
Viewers know exactly what they’re getting with Disney+ (family rate) and ESPN+ (sports). The specificity of the services sets them apart from more general options, such as Netflix and HBO Max, which feature a hodgepodge of popular content at a time when the saturation of streaming services is beginning to overwhelm consumers. A Nielsen report found that nearly half of respondents think it’s hard to find the content they want because there are so many options. Read also : Netflix’s program to fix the payment crisis began in Asia. (And go back to point one: Nearly two-thirds want bundles.)
5. International Subscriptions Are Just as Valuable
In recent years, almost all of the top 20 programs on broadcast TV have been sports. It’s the one area where traditional TV still rules, and no one knows that better than Disney, the mother of ESPN. That’s why ESPN+ has a whopping 22.8 million subscribers. Netflix has yet to make a serious offer for rights to a top sports league, although other streaming platforms such as AmazonAMZN
, AppleTV+ and even Twitter have done that. To be a real player in streaming, companies need a sports element as consumers trim their total package and want everything under one umbrella.
