Survey: More Than 14% of U.S. Netflix Subscribers May Cancel It in Favor of Disney+

More than 14% of U.S. Netflix customers are considering ditching their subscription in favor of Disney+ when the new streaming service launches in November, which could amount to a loss of approximately 8.7 million subscribers for the streaming pioneer.

Those are the findings of a survey of more than 600 U.S. Netflix subscribers commissioned by Streaming Observer.

In the survey, 12.7% said they “might cancel Netflix” while 2.2% said they would “definitely cancel Netflix” and get Disney+.

Survey respondents with kids in their household were more than two times as likely to say they plan to cancel Netflix for Disney+.

Roughly two in five Netflix subscribers in the survey said they will try Disney+, which costs $6.99 per month ($69.99 per year), when it debuts. One-fifth of those surveyed said they plan on subscribing to both services, and 40% said they have no interest in Disney+.

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Viacom Completes Pluto TV Acquisition

Viacom March 4 announced the completion of the acquisition of AVOD service Pluto TV.

The acquisition, for $340 million in cash, will advance Viacom’s strategic priorities while solidifying Pluto TV’s leadership in the domestic free streaming video market and accelerating its growth globally, according to a Viacom press release.

Pluto TV will operate as an independent subsidiary of Viacom, led by President and CEO Tom Ryan.

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“The completion of this deal marks an exciting next step in Viacom’s evolution and a powerful opportunity for us to extend our consumer reach and broaden our ability to add value across the industry as the media landscape continues to segment,” said Bob Bakish, Viacom president and CEO, in a statement. “Together with Pluto TV, we look forward to becoming a stronger partner to distributors, advertisers, content providers and audiences around the world.”

Founded in 2013, Pluto TV streams more than 100 channels and thousands of hours of on-demand content spanning television and movies, sports, news, lifestyle, comedy, cartoons, gaming and trending digital series. It has more than 12 million monthly active users across devices, including smart TVs, streaming players, mobile devices, desktops and gaming consoles, according to the release.

“Pluto TV will have a crucial role in expanding Viacom’s presence across next-generation distribution platforms as a standalone free over-the-top (“OTT”) product, a direct-to-consumer cornerstone, and a partnership solution for wired, mobile and OTT distributors to serve their broadband only and video bundle subscribers on a zero incremental cost basis,” stated the release.

Pluto TV also benefits Viacom’s advanced marketing solutions (“AMS”) business, serving as a source of targeted inventory — particularly for younger demographics — thereby strengthening Viacom’s ability to serve advertising customers and their associated agencies, the release stated.

DEG Forms Direct-to-Consumer Alliance

DEG: The Digital Entertainment Group has formed the DTC Alliance as a subset of DEG membership.

“Every major media company and TV network will launch a Direct-to-Consumer (DTC) streaming service in the next five years representing a significant new chapter in how television and film content is purchased, accessed and consumed,” the DEG stated in a release. “As DTC streaming currently is a longtail situation with a few high-reach apps and many low-reach services, DEG’s DTC Alliance is designed to support direct-to-consumer media services of all sizes to tackle difficult challenges and coordinate voluntary best practices and initiatives; advocate for the industry by presenting a common front to the commercial community; and promote member channels through campaigns aimed at building awareness among consumers, as well as through industry-leading events.”

Under the umbrella of the DTC Alliance, DEG has established six committees to set objectives and agendas in the following areas: Marketing Nomenclature, Data Analytics, International Expansion, Rights Repository, Title Availability Directory and Uniform Metadata Standards.

“With the DTC Alliance, DEG is bringing together DTC content companies and service providers to build a robust and efficient marketplace for all players, and to promote the new DTC experience to consumers,” said Amy Jo Smith, DEG president and CEO. “DEG has a track record of more than 20 years in bringing new media platforms, including DVD and Blu-ray Disc to market. We are very excited to apply this extensive market-building experience to the DTC arena, and encourage all appropriate companies to participate in setting the DTC Alliance’s initial objectives and a forward-looking agenda for this new industry.”