Research from Parks Associates have found both Disney+ and Apple TV+ have captured a significant market share during their first six months of operation.
The Dallas-based analyst’s Market Snapshot show Disney has marched ahead with a 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.
The two are closing in on the Big 3 streaming services Netflix, Amazon Prime Video, and Hulu.
Parks reached its conclusions primarily from an online survey of more than 10,000 broadband households in the United States. 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 cancelled 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. “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.
Parks Associates: Subscriptions to Major OTT Subscription Services
