As Disney prepares to unveil its streaming service, Disney+, speculation of what this will mean of other streamers—mainly Netflix—is rampant. But not all suggestions and assumptions are without merit. According to a new survey, Netflix subscribers are already considering a move to Disney+.
What’s happening:
- A recent research study conducted by Streaming Observer and Mindnet Analytics reveals that Disney could easily pull—not share—subscribers from Netflix.
- Market Watch writes that around 14% of Netflix subscribers are prepared to ditch the streamer in favor of Disney+.
- Currently, that reported 14% comprises 8.7 million people, which if they do choose to leave Netflix, could mean a revenue loss of $117 million a month for the streamer.
Interesting survey findings:
- Streaming Observer reached their numbers after polling a total of 602 U.S. based Netflix customers for this survey. Results indicate:
- 12.3% say they may cancel Netflix and subscribe to Disney+
- 2.2% say they will definitely cancel Netflix
- 1 in 5 users are planning to subscribe to both services
- 37.5% said they would try Disney+ when it is released
- 40% said they have no interest
- 23% of parents with children 15 and younger said they might cancel Netflix for Disney+
- 10% of subscribers without children said they may cancel Netflix
What they’re saying:
- Netflix founder and Chief Executive Reed Hastings: “Disney and Apple add a little bit more, but frankly I doubt it will be material because again there’s already so many competitors for entertainment time.”
- Survey study on Netflix content: “While Netflix has been steadily adding more kids content to its library, it’s hard to imagine it can match what Disney offers on this front, which could be a source of concern for the streaming giant.”
- SunTrust Robinson Humphrey analysts: “Further, Disney + Fox + Warner + Universal collectively account for a minority of Netflix content spend and of viewing hours on the platform and Netflix access to this some of this content likely has a longer than appreciated tail per licensing agreements.”
- Market Watch quoting “Martin”: “For both Disney and Warner Bros, those libraries were paid for 30-50 years ago, which implies higher marginal ROI (return on investment) on current content investments. Additionally, their content often benefits from emotional connection to the material created during childhood (e.g., Cinderella, Snow White, Lion King, etc).”
ICYMI:
- Earlier this year analysts at J.P. Morgan indicated that Disney+ could one day reach 160 million subscribers worldwide, easily besting Netflix, Amazon, and others.