Disney
- Before Disney had begun to market its Netflix competitor, Disney Plus, in earnest, researchers at UBS found a lot of people in the US were already aware of and interested in the service, which has been billed as hub for Marvel, Star Wars, Pixar, and other quintessential Disney brands.
- Thanks to its existing global fanbase, Disney will only have to spend a fraction on marketing to get Disney Plus off the ground in 2020 as Netflix is spending on marketing this year, analysts at Morgan Stanley previously estimated.
- But the doesn’t mean Netflix should be too worried about Disney Plus stealing its 60 million US subscribers.
- The UBS survey also found people many people won’t cancel their existing video services if they sign up for Disney Plus.
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Disney has already won half the battle when it comes to signing up subscribers for its forthcoming streaming service, Disney Plus.
Before the media giant had really begun to market the service, researchers at UBS found a lot of people in the US were aware of and interested in Disney Plus, which has been billed as a hub for Marvel, Star Wars, Pixar, and other quintessential Disney brands.
Fortunately for Disney rivals, like Netflix, most of those folks also aren’t likely to abandon their existing video services if they sign up for Disney Plus when it launches in the US on Nov. 12, UBS Evidence Lab found in a survey of 1,000 US consumers, conducted from Aug. 12-14.
A UBS survey found people in the US are aware of and interested in signing up for Disney Plus ahead of its November launch.
Ahead of the August fan convention D23 where Disney ramped up marketing for Disney Plus, 79% of respondents said they were aware of Disney Plus, and 43% said they were likely to subscribe to the streaming service.
Those who said they were likely to subscribe to the service skewed younger, between the ages of 18 and 34, and male.
Disney hopes to sign up 20-30 million subscribers domestically for Disney Plus by 2024.
The company has been touting Disney Plus as a family-friendly offering that will have new installments in the Star Wars, Marvel, and Pixar universes, such as "The Mandalorian," "Hawkeye," and "Forky Asks a Question," as well as original Disney movies including a live-action "Lady and the Tramp" and Disney Channel properties like a new "High School Musical" series and "Lizzie McGuire" reboot.
The biggest advantage the media giant has – entering the streaming game nearly a decade after Netflix, Amazon Prime Video, and Hulu (now controlled by Disney) — is the fans of its brands around the world. They may not know Disney Plus yet, but they probably know Marvel or Star Wars, which are two of the most popular entertainment franchises in the world, or grew up watching Disney movies.
Disney will only have to spend a fraction as much on marketing to get Disney Plus off the ground in 2020, its first full year available as Netflix is spending on marketing this year, analysts at Morgan Stanley previously estimated.
Read more: How Disney’s marketing advantage over Netflix will be its secret weapon in the streaming war
The survey also suggests people are thinking more of Disney Plus as an add-on to their existing video services than a replacement.
But the doesn’t mean Netflix should be too worried about Disney Plus stealing its 60 million US subscribers. The UBS survey also found that 67% of respondents wouldn’t cancel any of their existing video services if they subscribed to Disney Plus. Among those who also said they were likely to sign up for Disney Plus, 43% said they would keep all their existing video services.
People may be thinking of Disney Plus as an add-on to their existing video packages because of the price. At $7 per month, it will be cheaper than the starting price of Netflix in the US, and half the price of premium network HBO Now. Disney will also sell year-long subscriptions at a discount, and bundle Disney Plus with its two other streaming services, ESPN Plus and Hulu, for $13 per month.
As for the respondents who said they were likely to sign up for Disney Plus and cancel another service in the process, 35% said they would slash pay-TV services like cable and satellite. Another 33% said they’d cancel a streaming service like Netflix or Hulu. And 19% would ditch a premium-TV network like HBO or Starz.
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Source: Business Insider – arodriguez@businessinsider.com (Ashley Rodriguez)