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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Research: OTT Revenue Forecast to Reach $22 Billion in 2019

Based on 66 OTT providers, led by Netflix, Hulu and Amazon, U.S. OTT access revenue grew 37% to $16.3 billion in 2018 and is forecast to reach $22 billion in 2019, according to a new research from Convergence Research.

The research firm has released two new reports, “The Battle for the American Couch Potato: OTT and TV” and “The Battle for the American Couch Potato: Bundling, TV, Internet, Telephone, Wireless.”

Still, U.S. TV subscriber average revenue per user (ARPU) is still forecast to be three times U.S. OTT subscriber household ARPU in 2021.

The firm estimates 2018 U.S. cable, satellite, telco TV access (not including OTT) revenue declined 3% to $103.4 billion in 2018 and forecasts 2019 will see a similar decline. Also, 2018 saw a decline of 4.01 million U.S. TV subscribers and 2017 a decline of 3.66 million, according to the firm, which forecasts a decline of 4.56 million TV subs for 2019. The U.S. TV subscriber
base will decline 5% in 2019, from a decline of 4% in 2018, according to the firm’s estimates.

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By the end of 2018, the firm estimates 30% of households did not have a traditional TV subscription with a cable, satellite, or telco TV access provider, up from 26% at the end of 2017. The firm forecasts that number to reach 34% of households by the end of 2019. Convergence Research estimates 2018 saw almost 5 million cord cutter/never household additions.

The firm projects that a number of OTT plays, including large and niche, will fail due to insufficient subscriber traction, cost and competition, noting major programmers continue to accelerate their direct-to-consumer drive, including Disney and WarnerMedia. Other developments noted by the firm include:

  • Hulu spends more on content per sub than either Amazon or Netflix and continues to discount (notably with Spotify);
  • CBS/Showtime’s OTT subscriber trajectory has been faster than expected;
  • Discovery has backed and supplied Philo, gone live with Hulu, Sling and YouTube TV, and will be launching an OTT service with the BBC;
  • NBC Universal will be launching an OTT service in 2020;
  • and Viacom has backed and supplied Philo and others, acquired Pluto and Awesomeness TV and is producing for Amazon and Netflix.

Fandango Survey: Fans Plan to Stream Marvel Titles to Prepare for ‘Endgame’

Moviegoers preparing for the theatrical release of Avengers: Endgame April 26 plan to stream previous Marvel Cinematic Universe titles, according to a Fandango survey.

In the survey, 89% said they are getting ready for Endgame by streaming previous Marvel Cinematic Universe movies with friends and family at home, while 49% of millennials said they are planning a full-on Marvel movie binge this weekend.

FandangoNow, Fandango’s transactional VOD service, has seen a nearly 50% increase in transactions for Marvel Cinematic Universe movies in the past two weeks, since Avengers: Endgame advance tickets went on sale April 2, according to Fandango. FandangoNow is launching a weekend sale on select Marvel movie titles. April 18-22 fans can purchase select MCU movies on FandangoNow for $9.99 in HD and $14.99 in Ultra HD, including Captain America: Civil War, Avengers: Infinity War, Ant-Man and the Wasp and Thor: Ragnarok.

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According to the Fandango survey, the top five MCU titles fans plan to watch are:

  1.  Avengers: Infinity War
  2.  The Avengers 
  3.  Captain America: Civil War 
  4.  Avengers: Age of Ultron
  5.  Thor: Ragnarok

To date Avengers: Endgame is Fandango’s top pre-seller at the same point in the sales cycle.

“The countdown has started and we’re super-excited with only one week to go until ‘Avengers: Endgame’ opens in theaters,” said Fandango managing editor Erik Davis in a statement. “Fans are getting ready for the film’s debut by re-watching previous MCU titles or introducing ‘newbies,’ friends and family members to the titles they need to see to get up-to-date.”

In an exclusive interview with Davis, Endgame co-director Anthony Russo said that Captain America: Civil War and Avengers: Infinity War are the two films that would be most helpful for fans to view as lead-ins before seeing Endgame.

‘Holmes & Watson’ Is Top Disc, ‘The Mule’ Top Digital Release on Redbox Charts

Sony’s Holmes & Watson took the top spot on the Redbox physical rental chart but lost out to Warner’s stubborn holdover The Mule on the digital chart for the week ended April 14.

The Will Ferrell-John C. Reilly comedy debuted in the No. 1 spot on the Redbox kiosk chart, which tracks DVD and Blu-ray Disc rentals at the company’s more than 40,000 red vending machines, but the Clint Eastwood vehicle The Mule trotted up from No. 2 to No. 1 on the Redbox On Demand chart, which tracks digital transactions, including both electronic sellthrough and streaming rentals.

Holmes & Watson, a sendup of the classic Sherlock Holmes mysteries, finished at No. 2 on the digital chart.

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Paramount’s “Transformers” reboot Bumblebee landed at No. 3 and the DC swimming superhero flick Aquaman floated at No. 4 on both charts.

Two other new releases entered the disc chart for the week. Sony’s A Dog’s Way Home, about the many lives of a reincarnating dog, sat at No. 5, while Universal’s Steve Carell starrer Welcome to Marwen, finished at No. 6.

 

Top DVD and Blu-ray Disc Rentals, Redbox Kiosks, Week Ended April 14:

  1. Holmes & Watson (New) — Sony
  2. The Mule — Warner
  3. Bumblebee — Paramount
  4. Aquaman— Warner
  5. A Dog’s Way Home (New) — Sony
  6. Welcome to Marwen(New) — Universal
  7. Second Act — Universal
  8. Spider-Man: Into the Spider-Verse — Sony
  9. Mary Poppins Returns — Disney
  10. Instant Family — Paramount

 

Top Digital, Redbox On Demand, Week Ended April 14:

  1. The Mule— Warner
  2. Holmes & Watson— Sony
  3. Bumblebee— Paramount
  4. Aquaman— Warner
  5. A Dog’s Way Home — Sony
  6. Instant Family — Paramount
  7. Welcome to Marwen— Universal
  8. Second Act— STX
  9. Spider-Man: Into the Spider-Verse — Sony
  10. A Star Is Born (2018) — Warner

Nearly Half of U.S. Adults in Survey Tune Into Local or Ad-Supporting Streaming Services

While SVOD is making big news, free and ad-supported streaming remains a force, according to a new survey.

Nearly half of respondents in a survey of more than 2,000 U.S. adults said they were tuning into local (i.e. NewsOn, CBSLocal) or free, ad-supported (i.e. Pluto TV, XUMO and Roku) streaming services, at 47 percent and 46 percent, respectively.

The survey was conducted online by The Harris Poll on behalf of ZypMedia, a software platform that manages digital advertising offerings for media and broadcast companies.

When it comes to consumers that watch free or ad-supported streaming TV, 62% of consumers that have a preference between watching local or national commercials, prefered local ads. That number was slightly more, at 68%, for consumers that watch local streaming services. This was particularly true for millennials (defined as ages 18-34) who said they watch free, or ad-supported over-the-top (OTT) streaming services; they prefered local ads more than consumers ages 55-plus.

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“While SVODs like Netflix and HULU garner much of the world’s attention, free, ad-supported and local streaming services are becoming powerful platforms for brands to make an impact in local markets around the country,” said Aman Sareen, co-founder and CEO, ZypMedia, in a statement. “Millennials are particularly responsive to local advertising messages, making ad-supported OTT a valuable channel.”

In the survey, 30% were cord cutters who watch all content via streaming services, while even more (37%) were “cord shavers” and watch both. More than half (52%) of cord cutters and 47% of cord shavers indicated that they don’t mind watching ads.

In addition, more than half (51%) of consumers surveyed that ever watch free, ad-supported streaming services agrees that the commercials that they see on streaming services are more relevant than the commercials they see on cable TV.

‘The Mule’ Battles ‘Bumblebee’ on Redbox Charts

Warner’s The Mule was a stubborn competitor for Paramount’s Bumblebee on the Redbox charts for the week ended April 7.

The Clint Eastwood drama took the No. 1 spot on the Redbox kiosk chart, which tracks DVD and Blu-ray Disc rentals at the company’s more than 40,000 red vending machines, and the “Transformers” reboot topped the Redbox On Demand chart, which tracks digital transactions, including both electronic sellthrough and streaming rentals. The Mule, meanwhile, came in at No. 2 on the digital chart while Bumblebee finished second on the disc chart.

Both titles were new releases on disc for the week. Bumblebee, starring Hailee Steinfeld, earned $127.2 million at the box office while The Mule took in $103.8 million.

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Warner’s Aquaman, the No. 1 title on both charts in the previous week, slipped to No. 3 on the two Redbox charts while the Jennifer Lopez comedy Second Act fell from second place to fourth on both charts.

Vice, a disc new release from Fox, finished at No. 6 on both the disc and digital charts. The Oscar-lauded film, starring Christian Bale and Amy Adams, chronicles the life and legacy of vice president Dick Cheney.

Top DVD and Blu-ray Disc Rentals, Redbox Kiosks, Week Ended April 7:

  1. The Mule (New) — Warner
  2. Bumblebee (New) — Paramount
  3. Aquaman — Warner
  4. Second Act — Universal
  5. Spider-Man: Into the Spider-Verse — Sony
  6. Vice (2018) (New) — Fox
  7. Mary Poppins Returns — Disney
  8. Instant Family — Paramount
  9. Fantastic Beasts: The Crimes of Grindelwald— Warner
  10. Ralph Breaks the Internet — Disney

 

Top Digital, Redbox On Demand, Week Ended April 7:

  1. Bumblebee — Paramount
  2. The Mule — Warner
  3. Aquaman— Warner
  4. Second Act — Universal
  5. Instant Family — Paramount
  6. Vice (2018) — Fox
  7. A Star Is Born (2018) — Warner
  8. Spider-Man: Into the Spider-Verse — Sony
  9. Green Book— Universal
  10. Fantastic Beasts: The Crimes of Grindelwald— Warner

Paramount’s ‘Bumblebee’ Shoots to Top of FandangoNow Chart

Paramount’s Bumblebee fought its way to No. 1 on FandangoNow’s chart of top movies for digital rental and purchase for the week ended March 24.

FandangoNow is movie site Fandango’s transactional VOD service.

The “Transformers” franchise reboot, which earned $127.2 million in theaters, stars Hailee Steinfeld in an origin story about the Autobot warrior Bumblebee. It debuted on digital March 19.

Warner took the second spot on the FandangoNow chart with another new digital release, the Clint Eastwood starrer The Mule, about a broke man in his 80s who unwittingly signs on as a drug courier.

The studio also managed a third-place finish with Aquaman, which sank two spots after two weeks at No. 1. The DC Comics superhero feature earned $334.8 million at the box office.

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Sony’s Best Animated Feature Oscar winner Spider-Man: Into the Spider-Verse hung in at No. 4 for another week, while Disney’s Mary Poppins Returns, which stars Emily Blunt, remained in the fifth spot.

The top films to purchase and/or rent on FandangoNow for the week ended March 24 were:

  1. Bumblebee — Paramount
  2. The Mule — Warner
  3. Aquaman — Warner
  4. Spider-Man: Into the Spider-Verse — Sony
  5. Mary Poppins Returns — Disney
  6. A Star Is Born (2018) — Warner
  7. Fantastic Beasts: The Crimes of Grindelwald — Warner
  8. Green Book — Universal
  9. Instant Family — Paramount
  10. Creed II — Warner

 

Fandango is celebrating the upcoming April 2 digital release of Glass by hosting an exclusive clip featuring scenes from the film and an interview with the film’s star James McAvoy and director M. Night Shyamalan across its various channels.

‘Spider-Man: Into the Spider-Verse’ Swings to Top of Both Redbox Charts

Sony’s Spider-Man: Into the Spider-Verse swung to the top of both Redbox charts for the week ended March 24.

The animated superhero film, which won the Academy Award for Best Animated Feature, took the No. 1 spot on both the Redbox kiosk chart, which tracks DVD and Blu-ray Disc rentals at the company’s more than 40,000 red vending machines, and the Redbox On Demand chart, which tracks transactional video-on-demand (TVOD), both electronic sellthrough (EST) and streaming. The Sony release was new-to-disc for the week, streeting March 19.

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One other new release entered the disc chart for the week, Disney’s Mary Poppins Returns, which floated in at No. 5. The reboot of the Disney classic, starring Emily Blunt and Lin-Manuel Miranda, earned $171.8 million in theaters.

On the digital side, coming in at No. 2 for the week was Warner’s superhero epic Aquaman, which earned $334.8 million at the box office.

Paramount’s Instant Family, a comedy starring Mark Wahlberg and Rose Byrne, held strong on both charts, finishing in the same spot at No. 3 on the disc chart and dropping just one spot from No. 2 to No. 3 on the digital chart.

Emerging on the digital chart at No. 10 was A Simple Favor, a comedy starring Anna Kendrick and Blake Lively, which was released late last year.

Top DVD and Blu-ray Disc Rentals, Redbox Kiosks, Week Ended March 24:

  1. Spider-Man: Into the Spider-Verse (New) — Sony
  2. Fantastic Beasts: The Crimes of Grindelwald — Warner
  3. Instant Family— Paramount
  4. Green Book— Universal
  5. Mary Poppins Returns (New) — Disney
  6. Mortal Engines— Universal
  7. Creed II — Warner
  8. Ralph Breaks the Internet— Disney
  9. A Star Is Born(2018)— Warner
  10. Bohemian Rhapsody — Fox

 

Top Digital, Redbox On Demand, Week Ended March 24:

  1. Spider-Man: Into the Spider-Verse — Sony
  2. Aquaman— Warner
  3. Instant Family— Paramount
  4. Fantastic Beasts: The Crimes of Grindelwald— Warner
  5. Green Book— Universal
  6. A Star Is Born(2018)— Warner
  7. Mortal Engines— Universal
  8. Creed II — Warner
  9. Bohemian Rhapsody — Fox
  10. A Simple Favor — Lionsgate

‘Aquaman’ Makes Another Splash on FandangoNow Chart

Aquaman emerged at No. 1 on FandangoNow’s chart of top movies for digital rental and purchase for another week.

FandangoNow is movie site Fandango’s transactional VOD service.

Warner’s DC Comics superhero feature held off the studio’s Fantastic Beasts: The Crimes of Grindelwald, which levitated to No. 2 (from No. 8) on the chart for the week ended March 17. “Harry Potter” writer J.K. Rowling’s followup to Fantastic Beasts and Where to Find Them earned $160 million in theaters, while the swimming superhero vehicle earned $334 million at the box office.

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Warner also took the third spot on the FandangoNow chart with the Oscar-launded A Star Is Born, which earned an Academy Award for Best Original Song and eight nominations. The music drama starring Bradley Cooper and Lady Gaga slipped just one spot from No. 2 the previous week.

Best Picture Academy Award winner Green Book landed at No. 4, rising from No. 10 the previous week. The film also picked up Academy Awards for Best Original Screenplay and Best Supporting Actor for Mahershala Ali.

Newly arriving on the chart were Disney’s Mary Poppins Returns, which took the fifth spot, and Universal’s Mortal Engines, which came in at No. 10. Mary Poppins Returns, starring Emily Blunt and Lin-Manuel Miranda, earned $171 million at the box office, while Mortal Engines, a post-apocalyptic actioner backed by Peter Jackson, made just $16 million theatrically.

The top films to purchase and/or rent on FandangoNow for the week ended March 17 were:

  1. Aquaman — Warner
  2. Fantastic Beasts: The Crimes of Grindelwald — Warner
  3. A Star is Born(2018) — Warner
  4. Green Book— Universal
  5. Mary Poppins Returns — Disney
  6. Instant Family — Paramount
  7. Spider-Man: Into the Spider-Verse — Sony
  8. Creed II — Warner
  9. Ralph Breaks the Internet — Disney
  10. Mortal Engines— Universal

Research: U.S. SVOD Household Spending Steady Since 2016 at Just Under $8 Per Month

U.S. broadband household spending on subscription OTT video services has held steady for three years, averaging just under $8 per month since 2016, according to research from Parks Associates.

The figures suggest adoption of multiple services or expensive services by some consumers is offset by a larger base of consumers who either subscribe to one or two relatively inexpensive services or who do not spend any money on OTT video services (30% of consumers), according to Parks Associates.

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“The stability in average household spend belies the activity going on under the surface,” said Brett Sappinton, Parks Associates senior director of research, in a statement. “2019 may be poised to break that trend. Netflix, Hulu and Amazon continue to pack on new subscribers. At the same time, services like ESPN+ are also experiencing phenomenal growth, and new offerings from Disney and WarnerMedia are set for release later this summer. One of three things will happen — more households will become OTT streaming households, rival services will begin to pull subscribers away from Netflix, or that spending number will go up.”

Parks Associates will discuss strategies to launch successful services in the complimentary webcast “Avoiding OTT’s Top 5 Mistakes,” co-hosted with Swrve March 26 at 11 a.m. CST.

“The deluge of OTT platforms has created greater competition for video based on choice and quality of content,” said Barry Nolan, chief strategy officer at Swrve, in a statement. “Yet as people spend more and more time consuming digital media, OTT platforms are seeing a lag in customers insights, loyalty, and revenue. We believe that by delivering the perfect message at the perfect time, OTT platforms will have a richer and more enduring experience with their customers.”