VMVPD Channels

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Part
01

VMVPD Subscription Channels: Amazon Prime Video, AppleTV

Amazon Prime Video has over 100 paid subscription channels, while Apple TV has close to 40 paid subscription channels. The latter's platform contains some channels Amazon Prime Video offers, and the prices range between $1.99 to $24.99 per month. A list of all the paid subscription channels available on both platforms can be found on this spreadsheet.


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Part
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VMVPD Subscription Channels: Sling, YouTubeTV

A list of all the paid subscription channels available on Sling and YouTube TV has been provided in columns D-E of the attached spreadsheet. Sling and YouTube TV offer 241 and 13 paid subscription channels respectively.

Summary of Findings

  • Sling and YouTube TV are available in the United States only.
  • Sling offers 241 additional channels thought its Orange Extras, Blue Extras, premium, Spanish-language, and international plans.
  • YouTube TV offers 13 premium add-on channels.
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Part
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VMVPD Subscription Channels: Hulu, Roku

A list of all the paid subscription channels available on Hulu and Roku has been provided in columns F-G of the attached spreadsheet.

Summary of Findings.

  • Hulu offers 72 paid subscription channels.
  • Roku offers 17 paid subscription channels.
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Part
04

Amazon Prime Video Subscribers

There is not data or information in the public domain that shows what percentage of Amazon Prime users also pay for a vMVPD type channel. Amzon has kept the number of Prime users a closely guarded secret until very recently. Due to a lack of information on the web in regard to genre channels, a proxy was used in place the data requested. It is reported that 31% of Disney+ susbcribers also stream other platforms such as Amazon Prime and Netflix.

Helpful Findings

Research Strategy:

Research identified that 7.7 million subscribers to vMPVPD channels was incongruent with the fact that there are 56 million Amazon Prime customers. Therefore, Amazon Prime members were not to be included within that data set. The research team investigated customers who had both an Amazon Prime accounts, and a genre channel by conducting numerous searches of the public domain to include industry databases common to the broadcast industry such as Neilsen and Horowitz. In addition, media articles related to the industry have not covered this specific subject other than discussing the differences of SVOD, AVOD, TVOD, and vMVPD. A Horowitz study is available for purchase that may contain more specific data pertient to Amazon Prime or other vMVPD users.





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Part
05

VMVPD Current Industry Trends, Part 1

Two current trends in the vMVPD industry are an increase in subscription price and a decrease in the number of new subscriptions.

Increase in vMVPD subscription Price

  • One of the factors that defined the vMVPD space was the low monthly fees charged to subscribers.
  • Currently, there has been a shift in the pricing of vMVPD services and players in the segment are increasing the prices charged for subscriptions.
  • In the last 18 months, the subscription price for low-end vMVPD packages have increased by about 50%.
  • Most competitors providing vMVPD services increased their prices.
Examples of Price Increase
  • Hulu with Live TV increased its basic monthly fee to $55 in November 2019. The increase was the second price increment in the year since Hulu had just increased the basic price from $40 — $45 in January 2019.
  • The price for AT&T basic package was also increased to $50 in March 2019.
  • YouTube TV also saw an increase in its monthly fee by $10. The company’s current base service cost is $50.
  • Fubo TV increased the price it charges its legacy subscribers to $45 from the initial $35. It additionally increased the rates of all its tiers by $10.
  • Sling TV increased its base price from $20 — $25.
  • Another example is the increase of PlayStation Vue basic plan from $45 — $50 in July 2019. It is imperative to note that this was the third time that Playstation Vue had increased the price of its basic package. It first increased it from $30 — $40 back in 2017 then increased it again to $45 in 2018.
Reasons why this Trend is Prevailing
  • One of the reasons why companies in the vMVPD segment are increasing their prices is because of change in terms in renewal contracts with content providers. This has caused content cost to increase forcing the vMVPD providers to increase their prices.
  • Another reason is the need of vMVPD providers to remain profitable due to increased costs experienced across the segment.

Decrease in the Number of New Subscriptions

  • vMVPD added a total number of 1.55 million new subscribers in 2019. This was a decline of 25% from the 2.06 million new subscribers that the industry experienced in 2018.
  • Evercore did research that also corroborated the fact that vMVPD subscriber growth has slowed. The research done by Evercore indicated that vMVPD category added less than 1 million subscribers in 2019. This was a decline from the number of new subscribers added in 2017 and 2018 that recorded a net addition of 2.5 million in both years.
  • PlayStation Vue membership subscription had surpassed 800,000 in the year, but since then its growth has been slowing.
  • AT&T reported a loss of 137,000 subscribers in its third-quarter 2019 report. The loss of subscribers reduced the number of AT&T subscribers from 1.86 million in 2018 to 1.15 million in 2019. The company subscribers, therefore, declined by 37%.
Reasons why this Trend is Prevailing
  • One of the reasons that the number of new subscribers is declining is due to the increase in prices charged for subscriptions.
  • Another reason could be attributed to the decrease in the conversion rate of traditional pay-TV subscribers to vMVPD subscribers. The current conversion rate of pay-TV subscribers is 40% a decline from nearly 100% conversion rate that was being realized earlier.
  • Furthermore, Evercore attributes the decline to lower promotional discounts.
  • Another issue is the increase in password sharing among subscribers. People will opt to share passwords with others instead of subscribing on their own.
  • Lastly, the streaming video segment is getting more crowded making consumers question whether they are a legitimate alternative to cable.
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Part
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VMVPD Current Industry Trends, Part 2

Current trends associated with genre-based or targeted vMVPD channels, such as Shudder, Acorn TV, and Sundance Now, are growing direct subscription numbers and expanded distribution through vMVPD service providers.

Direct Subscription Growth

  • Genre-based, niche, or targeted subscription channels are experiencing growth in their subscriber based.
  • The growth of niche streaming services is dependent on fan loyalty, with many of these channels, such as Dust and Broadway HD, finding a global audience.
  • The growth trend may be due to services such as Apple TV providing third-party access to these channels.
  • Acorn TV, one of AMC's four genre-based SVOD services, surpassed one million subscribers in the United States and Canada in September 2019.
  • Disney+ has seen rapid growth, reaching 28.6 million subscribers in just three months, due in part to its "Star Wars" live-action TV series, "The Mandalorian."

Expanded Distribution

  • Apple TV and YouTube are in the process of adding or contemplating the addition of paid third-party niche streaming channels to their line-ups.
  • Apple TV offers access to a number of genre-based subscription channels, including "Comedy Central Now, PBS Living, Sundance Now, Acorn TV, Lifetime Movie Club, UMC, Curiosity Stream, History Vault, Arrow Video Channel, Shudder and Mubi."
  • Competition is likely driving the move among streaming TV providers to offer access to genre-based channels, as noted by YouTube's current internal discussions about expanding its third-party subscription offerings to compete with Apple TV.
  • In July 2019, Tastemade signed a licensing deal with Hulu, a deal that is expected to expand Tastemade's connected-TV reach, which is currently around 120 million viewers, via platforms such as Roku Channel, YouTube TV, Apple TV Channels, and Philo.

Research Strategy

We searched media and entertainment sources, specifically looking for news related to niche or genre-based subscriptions services, searching for news related individual channels, as well as global trends. We compiled the identified trends by confirming them via multiple sources.
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Part
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VMVPD Future Industry Trends

Three trends expected to impact the vMVPD (virtual Multichannel Video Programming Distributor) industry in the next 3-5 years include the roll out of 5G, repackaging offerings into "Super Skinny Bundles" and projected growth from four to 14 percent of the market share.

Impact of 5G

  • In the US, the original monopoly on broadband by current operators is going to be upended by their competitors (AT&T, T-Mobile, and Verizon) as their 5G networks become ubiquitous.
  • Verizon has been open about their desire to strike deals with vMVPDs. There is an expectation that they will bundle their FIOS (fiber-optic bundles) and vMVPD into an attractive proposition for consumers.

SuperSkinny Bundles

  • Currently, large bundles of 80+ channels are the trend in vMVPD. However, industry experts predict that, within the next 2-4 years, the next trend will be towards what they are calling "SuperSkinny" bundles.
  • These will include the major broadcast networks with regional sports networks and some popular cable channels offered as add-ons.
  • As new streaming offerings continue to flood the market, consumers with multiple services are expected to look for ways to cut the costs and breadth of their offerings.
  • Any company that pares down the monolithic offerings to thin bundles will likely find a market for their product.
  • This new offering will be a good move for the broadcast networks and the current cable channels like HGTV that have loyal followings. It will likely hurt the channels with "fuzzy" offerings.

Expected Growth





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Part
08

VMVPD Subscription Channel Marketing, Part 1

Two best practices for marketing a vMVPD subscription channels to viewers include utilizing multiple social media channels and engaging in TV and digital advertising.

Utilize Social Media Channels

  • One best practice for marketing a vMVPD subscription channel to viewers involves the utilization of a platform's various social media channels to launch a wide-ranging marketing campaign. These channels can include YouTube, Twitter, Instagram, etc.
  • Social media can be utilized to showcase the platform's services, primarily the extent of the offerings accumulated within their streaming video library, including original content, as well as old and new movies and television shows. Additionally, they can be used to promote a range of special deals and discounts for both current and potential subscribers.
  • The platforms can craft short videos, as well as snippets of movies and television shows, detailing some of the content viewers can find in their library and use their social media channels to reach a broad audience, as there are an estimated 2.96 billion social media users globally, as of 2020.
  • This method of marketing is considered a best practice because it can be used to inform viewers of the benefits they can endure by signing up for a particular platform. They can also use the hashtag feature on most social media channels to reach a wider audience.
  • One example of a company that has successfully employed this particular practice is Disney+. During the beginning of its marketing push, the platform used its social media handles to encourage individuals to check out its services and massive library (8,000 TV shows and movies). It utilized Instagram, YouTube, and Twitter to employ "a basically everything digital campaign."
  • Disney+ also compiled a three-hour video collection composed of snippets of the movies and TV shows in its library and uploaded the full video to YouTube, using Twitter to attract viewers by stating, "Oh, and if you have 3 hours to spare … check out this special look at #DisneyPlus." Since it was uploaded (October 14, 2019), the video has gained more than 1.1 million views and 15,000 likes. Prior to its official launch (November 12, 2019), an October 2019 survey from UBS revealed that 86% of respondents had heard of Disney+, while 44% were willing to sign up for it.
  • As of February 3, 2020 (nearly three months after its launch), the platform has around 28.6 million subscribers, much of which can be presumably contributed to its social media marketing push. Disney+ had about 10 million subscribers 24 hours after the launch.

Engage in TV and Digital Advertising

  • Another best practice for marketing a vMVPD subscription channel to viewers is to employ TV and digital advertising. This tactic involves using TV and online channels to launch marketing campaigns that bolster a platform's awareness among the general public.
  • The platform can take advantage of the wide and diverse audiences that major television networks have to offer, and they can select specific online outlets to promote their services. These campaigns can be used to emphasize both the depth and scope of the platform's features and offerings, as well as showcase its programming.
  • It is a best practice because, as stated earlier, TV and digital advertising can be administered to help strengthen the public's awareness of a vMVPD subscription channel and its features.
  • Also, it provides them with a significant audience size. According to a 2019 report from Statista (paywalled but insights are presented), there are approximately 1.64 billion TV households (pay) globally. Another 2019 report from Statista (also paywalled) reveals that there are an estimated 4.13 billion internet users globally.
  • Examples of companies that have successfully employed this best practice include Disney+ as well as CuriosityStream, which focuses on both factual and non-fiction programming.
  • CuriosityStream, which has obtained 13 million subscribers, used TV and digital advertisements to start a marketing campaign with the purpose of encouraging growth and awareness. It called this marketing push the "Your World of Factual Entertainment" campaign. For this campaign, it used various online news outlets and television news networks.
  • Meanwhile, Disney+ released 30-second TV advertisements.

Research Strategy:

For this request, we first searched for recent articles, press releases, and news reports discussing best practices for marketing a vMVPD subscription channel to viewers. These included Streaming Media, Seeking Alpha, the Los Angeles Times, and the New York Times, among others. However, none of the sources we came across provided any specific best practices on the topic.

We also searched for recent case studies conducted in the past two years on best practices for marketing vMVPD subscription channels. The intent here was to locate common or effective practices identified by streaming or marketing experts. This strategy did not yield the results we were seeking as we mostly found information on general OTT and vMVPD streaming platforms and there was no mention of those that could be classified as genre channels.

Finally, we decided to focus on specific vMVPD subscription channels with high subscriber counts that employed aggressive marketing campaigns to drive awareness of their brand. With this strategy, we came across Disney+ (28.6 million subscribers) and CuriosityStream (13 million subscribers), and we were able to determine that those platforms used successful campaigns through social media and digital and TV to market themselves to viewers. Therefore, we presented the tactics employed by those streaming platforms as best practices.
Part
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Part
09

VMVPD Subscription Channel Marketing, Part 2

Additional best practices for marketing a vMVPD subscription channel to viewers would be use of strong messaging campaigns, press releases, welcoming offers, influencer marketing, and sports sponsorship. Below is an overview of the findings, as well as an explanation of the research strategy.

Marketing Message Strategies

  • Marketing messaging is the phrasing and language that appears on a company's promotional materials to influence the consumer's perspective of the company. According to Apifonica, a marketing "campaign can only be as successful as the marketing message it delivers." A company's messaging strategy lays the foundation for its promotional campaigns.
  • The "Hulu has live sports" message was part of Hulu's campaign to drive awareness of its live TV offering. Through this message, the target audience was not only made aware of Hulu + Live TV, but also of the fact that it offers live sports events through its partnerships with ESPN, ABC, and TNT.
  • Sling TV launched the "We Are Slingers" omnichannel campaign to highlight its 'flexibility' (the control and choice it offers consumers). The message was passed through social media platforms, mobile devices, and digital outlets.
  • YouTube TV's "Presented by YouTube TV" campaign to highlight its key features, prominent among them real-time viewership.

Press Releases

  • A press release is a form of written communication that highlights specific information regarding happenings in a company including product launches, events, updates, among others. Its main purpose is to clearly and specifically promote something of significance.
  • Hulu has released several press releases to promote the launch and updates of Hulu + Live TV. Google has released several press releases to highlight the launch of YouTube TV and expansions of its portfolios. Sling TV also releases press pieces regularly to highlight its achievement or to provide information on updates.

Welcoming Offers

  • According to Forbes, free trials should be part of every company's customer acquisition strategy. It is a "show don't tell" approach that helps customers to better understand a company's value proposition.
  • Both Hulu + Live TV and YouTube TV offer free trials for new and eligible returning customers. The former and latter vMVPDs offer seven-day and 14-day free trials.
  • Introductory offers are lower prices to bring in new clients. They are set lower than the usual prices to entice and retain new clients who would otherwise be put off by the standard rates. Sling TV offers a $5 introductory price on the first month instead of the usual starting price of $30.

Influencer Marketing

  • Simply put, Influencer Marketing is a collaboration between trusted celebrities/influencers with brands to endorse a brand's products to the influencer's fans/supporters.
  • NBA stars Damian Lillard and Joel Embiid are among Hulu + Live TV's influencers while Sling TV has used Maya Rudolph, a renowned American actress.

Sports Sponsorship

  • Both Hulu + Live TV and YouTube TV have been aggressively sponsoring live sports to appeal to sports fans in the United States. This is an effort to inform sports fans that their subscriptions entitle them to the same games as traditional pay-TV package.
  • Hulu TV has sponsored Stanley Cup and TNT’s NBA playoffs while YouTube TV has sponsored NBA Finals, the World Series, and the Super Bowl pregame show.

RESEARCH STRATEGY

As explained in our previous hours of research, the information on best practices for marketing a vMVPD subscription channel to viewers is not publicly available. As of December 2019, Forbes reported that Sling TV and Hulu + Live TV were the largest vMVPD with about 2.7 million subscribers each, and YouTube TV came third with over 1.6 million. We, therefore, analyzed their marketing strategies and provided the ones that are common to two or more companies. While we managed to provide the companies that leverage the practices, it was not possible to determine any metrics of success. We searched through their media releases and websites, we also searched through marketing resources such as Adweek and Adage and explored media resources for any publicly available data. We assumed that these strategies were successful because the companies' subscriptions are on a rising trajectory.
Part
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Part
10

VMVPD Subscription Channel Case Studies

For vMVPD subscription channels BritBox and Disney+, streaming services offer the chance to reach out to fans of niche markets in a new and exiting way. BritBox relies on trends in binge watching, while Disney relies on the strength of its franchise. Both have seen growth in their streaming platforms in 2019.

BritBox

BritBox Marketing

Disney+

Disney+ Marketing

  • D23 club members were among the first to be offered the Disney+ streaming service.
  • Disney+ currently offers several promotions. Verizon customers can subscribe to the service free for a year, while Chromebook users can claim three free months.
  • Other subscribers can opt in to a special bundle that also includes Hulu and ESPN+ for $12.99 a month.
  • Disney+ offers several special shows unique to the streaming service, such as The Mandalorian, Loki, and Falcon and Winter Soldier.
  • Disney+ saw massive amounts of subscribers and app downloads after its initial launch in November 2019.
  • The streaming service also generated 16% of all Streaming Video on Demand revenue in the United States, based on Quarter 4 earnings.

Marketing strategies were found mostly through research into promotions being run by the two companies, or by finding products unique to the streaming service. The companies themselves present information on unique services and price promotions on their websites. The research team defined "metrics of success" as company success in regard to presenting services as unique and proven growth in number of subscriptions and downloads in the past year. Emphasis was placed on statistics showing growth or profit, when available.
Sources
Sources

From Part 05
Quotes
  • "Everscore found that vMVPD subscriber growth has slowed, with the category adding less than 1 million subscribers overall in 2019; this follows net additions of 2.5 million in both 2017 and 2018. "
Quotes
  • "The $5 price increase on virtual MVPD service follows very similar moves last year by most competitors in the headed vMVPD category. "
Quotes
  • "The bad news is subscribers leaving traditional pay TV aren’t converting to vMVPDs like they used to. MoffettNathanson estimated the conversion rate was at just over 40% over the last 12 months."
Quotes
  • "That means we can expect vMVPD prices to keep inching up as well. And while part of that will be due to rising content costs, part will be due to the need for them to remain/become profitable and the realization that they have something consumers are willing to pay for."
From Part 09
From Part 10
Quotes
  • "For its part, ITV believes there is an untapped market for programming from PSB libraries that can complement existing services such as Netflix for people who binge-watch mainly British shows, the company's subscription video-on-demand group director, Reemah Sakaan, said in an interview."
  • "BritBox's target audience is likely older viewers who predominantly watch live TV, according to streaming expert Dani Warner from U.K. price comparison service uSwitch. The average age of an ITV viewer has steadily increased since 2010, data from media regulator Ofcom showed, with 83% aged 35 and over."
  • "The U.K. streamer will struggle to make a significant profit in its lifetime unless 90% shareholder ITV substantially increases its investment in the service, analysts said. The broadcaster had allocated £65 million through 2020. Comparatively, the U.K.'s most popular streaming service, Netflix, spent $15 billion on content in 2019 alone. BritBox recently reached profitability in North America, where it launched in 2017."
  • "BritBox offers British shows and movies once they leave their catchup windows from the U.K.'s leading public service broadcasters, or PSBs, for £6.99 per month. The service features content from ITV, BBC, Viacom Inc.'s Channel 5 and Comedy Central units, and it is adding shows and movies from Channel 4 TV in 2020. "
  • "BritBox could end up cannibalizing ITV Hub's audience by cutting into its total viewing time — which rose 13% year over year for the six months ended June 30 — Simon said. This would only further shrink the company's ad impressions already suffering due to its total viewership decline, she added."
Quotes
  • "The UK iteration of BritBox, the SVOD service run by ITV and the BBC, is set to launch in the second half of 2019."
Quotes
  • "Coming up on its two-year anniversary, British subscription video streaming channel BritBox has surpassed 500,000 paying subscribers. Now, the company plans to ramp up its investment on content, including funding more original series, co-productions as well as licensing popular British programming for its users in the U.S. and Canada."
  • "Launched in 2017, BritBox is a joint venture between BBC Studios, the commercial arm of the BBC, and ITV, one of the largest commercial broadcasters in the U.K. (AMC Networks is also a minority investor in the company.) BritBox is focused on being a niche subscription service catering to fans of British programming. This includes exclusive licenses on shows such as the Rowan Atkinson-starring “Maigret” and John Cleese-starring “Hold the Sunset.” The channel also makes some popular shows such as “EastEnders” available within hours of the episode’s broadcast in the U.K."
  • "Last summer, BritBox premiered its first original series, “Bletchley Circle: San Francisco.” The show was commissioned by BritBox and aired on the streaming channel in the U.S. and Canada, with ITV airing the series in a primetime slot in the U.K."
  • "With subscribers doubling from 250,000 to 500,000 over the course of 2018, BritBox now plans to spend more toward commissioning exclusive original series as well as co-productions with broadcasters, producers and distributors in the U.K."
  • "Calculated at the $7 monthly plan alone, BritBox is roughly doing $42 million in subscription revenue at this point."
  • "Sriraman declined to comment on whether BritBox is profitable. The channel offers several different subscription options including a $7 monthly plan and $70 annual plan in the U.S, as well as an $8 monthly plan and $80 annual plan in Canada. The annual subscriptions were introduced at the end of 2018, with BritBox seeing a strong interest in the long-term subscriptions during the holiday season, Sriraman said."
  • "While focused on being an indispensable streaming channel for fans of British TV, BritBox found an unlikely group of supporters: women ages 45 and above, living in the south or midwest regions of the U.S. While Sriraman did not break down how many BritBox subscribers fall into this category, she said this audiences over-indexes on time spent on BritBox by “130 to 140” percent. The average session time per BritBox subscriber is over 100 minutes, Sriraman said."
  • "Going forward, BritBox is planning on doing more research around the viewing habits and preferences of both subscribers and non-subscribers that fall into this category, in order to get a better understanding of how to cater programming to their interests. “Has BritBox become a destination in Omaha, Georgia and Texas? It’s something we’re going to be more closely studying in the next few months.”"
Quotes
  • "BritBox is a streaming service that has been available in the US for over two years, and it has north of 600,000 subscribers. "
  • "Given how much great BBC content is already on Netflix UK or the Beeb's own licence fee-supported iPlayer streaming service, BritBox's lineup doesn't immediately strike us as exciting compared to its competitors. To take just one example from dozens of shows, you could watch the phenomenal anthology show Inside No. 9 on BritBox, or you could just watch all of it on iPlayer for free. "
  • "Likewise, while BritBox's library does seem fairly comprehensive when it comes to British classics like Blackadder, Downton Abbey, Prime Suspect and Inspector Morse, not everything we expected to see is on there right now. You'll find 11 series of Doctor Who on iPlayer for free right now, but none on BritBox – although by Christmas, over 600 episodes of pre-1989 Doctor Who stories will join the lineup. "
Quotes
  • "Binge mysteries to histories, beloved classics to new shows fresh from the UK, all with a 1 Year Gift Subscription. Just $69.99 - that’s 12 months for the price of 10."
  • "Start your 7-day FREE trial, then just $6.99/month or $69.99/year"
Quotes
  • "Plus, Disney+ launched with several promotions to help push installs, including one with (disclosure: TC parent) Verizon that offered a year for free, another with Google to give three free months to Chromebook owners and a discounted bundle of Disney+, ESPN+ and Hulu for $12.99/month."
  • "Now in its second month, post-launch, Sensor Tower says the app has reached nearly 41 million total installs across the App Store and Google Play worldwide and has generated an estimated $97.2 million in consumer spending."
  • "Its revenue figures are still strong, too, with the app generating $43.9 in month two after the $53.3 million it made during the first 30 days. (This includes revenue in the U.S., Canada, Australia, New Zealand and the Netherlands)."
  • "In terms of revenue, Disney+ grossed more than $50 million in its first 30 days, beating out other subscription video on demand (SVOD) rivals, like HBO NOW and Showtime. In December, Disney+ also generated more U.S. revenue than HBO NOW had in its best month, including during revenue spikes it saw during the final season of “Game of Thrones.”"
  • "In Q4, Disney+ generated 16% of all SVOD revenue in the U.S. — an impressive feat, given it only launched in mid-November. Also notable is that the app was able to reach 71% of Netflix’s peak revenue in December."
Quotes
  • "Interestingly, the average respondent cited Disney's film catalog — particularly the Marvel universe films and Disney and Pixar's animated titles — as the most valuable content on the new platform."
  • "Disney is investing in several original series for Disney+ — including Marvel Universe-set Falcon & Winter Soldier and Loki, starring Tom Hiddleston, and The Mandalorian, set in the Star Wars Universe. So far, however, it appears the Disney's film library — which will be exclusive to Disney+ in the U.S. after the studio pulls its movies from Netflix from 2020 — is the new service's unique selling point."
  • "Of the more than 1,000 people surveyed, just over a fifth (22 percent) said they were likely or highly likely to subscribe to Disney+. But that figure jumps among two key Disney demographics: 18-24 year-olds and households with children. And 34 percent of 18-24 year-old respondents said they intended to subscribe to Disney+, while 36 percent of households with children (a group nearly twice the size of the 18-24 year-old demo) agreed. Ampere noted that there is very little crossover between these two demographics, so they represent a cumulative audience potential for Disney."
  • "The demographic most eager to sign up to Disney+, however, is not households with children, but those living with friends. On average, 37 percent of those households said they were likely to subscribe when the SVOD service becomes available."
Quotes
  • "The company will also make use of its other consumer touchpoints to promote the service. That means promoting the service to people who own its co-branded credit card, have stayed at one of its hotels, or are members of its D23 fan club."
  • "The campaign is expected to launch later in August, initially in the US but quickly rolling out to select international markets that will also be among the first to offer access to Disney+. D23 members will be the first people to be offered subscriptions."
  • "Netflix invest $2.37bn (£1.95bn) in marketing in 2018, mostly to promote its original content. By comparison, Disney invested around $2.8bn (£2.3bn) last year across its whole business, according to Statista."
  • "“If you compare us to Netflix, we’re going to have far fewer products than they do, but we’re relying on the strength of our brands and the fervour that fans of those brands have for the product that we make under those brand umbrellas,” said Iger."