Parks Associates today released research from a recently fielded consumer survey showing new OTT services Apple TV+ and Disney+ have captured significant market share in the streaming video space, rounding out the top five behind the “Big 3” Netflix, Amazon Prime Video, and Hulu. The research firm’s Market Snapshot: Disney+ and Apple TV+ highlights the impact of the entry of Disney+ and Apple TV+ in OTT market, including insights into the factors driving their growth.
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.
Data presented in this Market Snapshot were drawn primarily from an online survey of more than 10,000 consumers fielded between March 8th and April 3rd to heads of broadband households, after the COVID-19 crisis had begun in the United States. Additional data from the market snapshot:
• Nearly three in ten broadband households report their use of online video services has increased because of the COVID-19 outbreak.
• 81% of Disney+ subscribers subscribe to Netflix, as do 72% of Apple TV+ subscribers.
• Nearly one-half of Disney+ subscribers canceled another OTT service over the last 12 months, as did roughly two-thirds of Apple TV+ subscribers.
“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, in a statement. “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.”
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.
“Apple TV+ promoted a small stable of original programming and is now looking to supplement that with more third-party content,” Nason said. “Apple TV+’s growth is due largely to a free year of service for those who recently purchased an Apple device, which brings the firm’s brand loyalists into the service. 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.”
MacDailyNews Take: As predicted:
Apple TV+, at just $4.99 per month, doesn’t have to disrupt Netflix by taking subscribers; it’s additive. Most people who already subscribe to Netflix will simply add Apple TV+, not drop Netflix for it. Many, tens of millions in the first year alone, will get Apple TV+ for free with the purchase of any iPhone, iPad, Apple TV, iPod touch, or Mac! — MacDailyNews, October 21, 2019
It’s amazing what “free” will do, huh? Let’s see what happens when it costs real cabbage
Absolutely right. I have it free, from the new iPhones we bought. Otherwise, no sale.
Apple definitely needs to fatten up its content with older TV shows and movies. Does Apple think it’s so special they can gain market share with such limited content? Such arrogance. Can’t Apple do some research on what consumers like to watch and build a back catalog from that. I watch older TV shows on Amazon Prime and I still enjoy them even if I saw them 20 or 30 years ago. At 70+, I have a lot of years I’ve watched TV and classic shows are just as good as new ones. Humans haven’t changed that much. I’m not sure how Apple thinks it can do well in the streaming business by only showing original content. Apple understood music but seems to be struggling with video. There are so many things people enjoy watching and Amazon has a good, if not great selection of content to watch. It’s hard to believe Apple can’t keep up with Amazon in terms of purchasing content. Apple might as well forget about catching Netflix and I’m not sure Netflix has a profitable business model, anyway.
I’m not saying I have an answer to make Apple’s streaming service a top contender, but it just seems Apple’s content is pretty thin in every way.
With Apple’s full one year free offer when buying most Apple products, is this counting of that free trial, or is it subs that people have agreed to pay for? It’s deceiving if counting free trial subs. There has been the same problem with Apple Music.
I won’t be renewing. I only picked up Disney+ because I got that insiders deal – $130 for 3 years. I’ll probably get that much value out of it but it will be debatable if I renew it after that. I dropped Netflix years ago and don’t care about any of the other streaming services. Next time I renew my FIOS I’m dropping the bundle. Indeed I’m going to try to go business class Internet only if I can swing it. There is very little content from Hollywood or the other large companies that’s appealing to me; I find far more interesting content from the independent content creators on services like YouTube or Podcast – so much so I can’t keep up with it as it is.
Isn’t this type of gaining market share similar to accusing Android on smartphones of doing the same via BOGO deals? The true test will come about a year after they stop offering free 1yr subs for HW purchases.