Disney+ is set to launch in the US on November 12th and according to analysts at UBS, they are reporting that interest in the new streaming service is higher than Disney expected.
The investment bank surveyed 2,000 customers in the U.S. aged 18 and above between April and May and found that 43% were interested in Disney+. And this is before Disney has even started marketing the new service.
“This compares to Disney guidance for 20-30M US subscribers by 2024, or ~20-30% penetration of US broadband households. We view this as a strong result considering Disney+ will not launch until November and marketing for the service has yet to hit critical mass.”
The analyst also said that
“Interest was highest for younger demos as well as higher income households. We continue to see Disney+ as well-positioned in the increasingly crowded streaming video market due to the strength of the Disney brand and content assets.”
This is all great news for Disney and falls into line with what previous analysts have said. With a huge back catalog of titles, original programming, major franchises and a low price of $6.99 a month, these are all reasons why interest is already higher than expected and will no doubt grow as it gets closer to launch.
However there are some issues that Disney could face, as the UBS survey also askeD consumers about how many subscription video services they’re willing to pay for. Approximately 50% of respondents said they would pay for only one service, approximately 40% said they would pay for two to three, and only about 10% said they would pay for more than four.
This data shows consumers are still only willing to pay for a few video services and that existing platforms such as Amazon Prime Video, Hulu and Netflix, could lose subscribers as people take up newer services like Disney+.
“This would result in only a handful of winners in the OTT video space (including those with must have content/originals) and an even larger number of losers over time. We view Disney as well positioned to be one of the winners given Hulu’s current scale (28 million subscribers and growing rapidly) and the differentiated content offering of Disney+.”
And that isn’t hugely surprising, as people will only be willing to buy into so many subscriptions, Disney+ has lots of good selling points but it’s all going to come down to content that each person wants to watch.