Parks Associates released data collected from a recent consumer survey, which indicates that new OTT services, such as Apple TV+ and Disney+ have captured significant market share for video streaming, despite highlighting Netflix, Amazon Prime Video, and Hulu as the “Big 3” among the top five streaming services. The research firm's report “Market Snapshot: Disney+ and Apple TV+” identifies the impact of the launches of Disney+ and Apple TV+ in the OTT market, including insights about the factors that contribute to the growth of the services.
The online survey from which the information presented in the market snapshot was primarily gathered represents feedback from more than 10,000 consumers. The data was fielded between 8th March and 3rd April to heads of broadband households, shortly after the virus was announced in the United States.Three in ten broadband households have reported an increase in their time of online video service usage as a result 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, similarly to two-thirds of Apple TV+ subscribers. "Apple TV+ promoted a small stable of original programming and is now looking to supplement that with more third-party content," Steve Nason, Research Director at Parks Associates 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 canceled another OTT service, so it appears Apple does have a core group of dedicated subscribers. Apple's challenge is to expand beyond that group.”
Disney+ spiked to a 25% adoption among US broadband households within its first 6 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. The app also benefited from promotions, including 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. "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," Nason said. "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."