June 1, 2020
New data from Parks Associates suggests Apple’s foray into the subscription streaming market is stronger than speculated.
Since Apple TV+ launched last November, around the same time as Disney+, it has taken a backseat to the much-ballyhooed SVOD service from the Walt Disney Co.
And, indeed, Disney+ has an enviable 25% adoption rate among U.S. broadband households after just six months in the market, Parks Associates says.
And yet Apple TV+ has reached nearly 10% adoption, according to Parks — not a bad showing, considering how much more hype the Disney platform has received.
Disney+ and Apple TV+ are fourth and fifth, respectively, among SVOD services adopted by consumers.
Parks’ data was generated from an online survey of more than 10,000 consumers fielded between March 8 and April 3 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 10 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,” research director Steve Nason said 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.”
The Dallas-based research group said Disney+ also benefited from promotions such as the introduction of the $9.99 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.”