ADDISON, Texas—Debuting with much fanfare in the fall of 2019, Disney+ and Apple TV+ have gained solid traction in the streaming video market, with both services rounding out the top five OTT platforms six months after their launch.
Parks Associates conducted a consumer survey, “Market Snapshot: Disney+ and Apple TV+,” which shows that since its launch, Disney+ has a 25% adoption rate among U.S. broadband households, putting it as the fourth most adopted streaming service. Apple TV+ has seen 10% adoption, making it fifth. The top three are the more established streaming services: Netflix, Amazon Prime Video and Hulu, in that order.
Additional findings from Parks Associates’ report 81% of Disney+ subscribers also subscribe to Netflix, as do 72% of Apple TV+ subscribers. Also, nearly a half of Dinsey+ subscribers have cancelled another OTT service in the last 12 months; nearly two-thirds of Apple TV+ subscribers did.
With the outbreak of COVID-19, Parks Associates also found that three in 10 broadband households have reported that their use of online video services has increased during the pandemic.
Both Disney+ and Apple TV+ have likely benefited from subscription deals provided upon launch,according to Steve Nason, research director for Parks Associates. These included a free year of Apple TV+ being available for anyone who purchased a new Apple device and with Disney offering a bundle for Disney+/Hulu/ESPN+ and a free year for unlimited or new Verizon subscribers.
As far as content, Disney+ relied on established brands like Star Wars, Marvel, Pixar and 20th Century Fox properties, while Apple TV+ originally went with original titles, though is working to add more third-party content, Nason reports.
Looking toward the future, Nason contemplates whether Disney+ has earned the status as an “essential service” for its subscribers if household budgets tighten, as very few subscribers only subscribe to Disney+. Apple TV+, on the other hand, has a higher percentage of exclusive non-Netflix subscribers, leading Nason to believe that it has a “group of dedicated subscribers.”
The survey was conducted as an online survey with more than 10,000 participants, conducted between March 8 and April 3.
The full “Market Snapshot: Disney+ and Apple TV+” report is available on Parks Associates’ website.
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