Is Disney Plus Actually Hurting Netflix? This Report Says Yes.
As many as one million subscribers may have defected
Netflix finally has real competition.
According to a new Cowen & Co. survey of 2,500 U.S. consumers (as reported by Variety), 21% of respondents said they signed up for Disney Plus in November, which works out roughly to 24 million customers nationwide. That figure handily beats Disney’s own estimates of 20 million subscribers by the end of the year.
The same report suggests that subscriptions to Disney’s new streaming service will cause one million additional U.S. Netflix customers to cancel their service before the end of 2019. That streamer had already projected lower-than-expected growth in America for Q4, although the service does seem to be doing well internationally (and earnings are beating previous estimates).
To be fair, not all of that Disney Plus success in the U.S. can be attributed to Baby Yoda — a third of those 24 million customers are getting a free one-year deal via Verizon. As well, Disney’s service is notably cheaper overall, with several different inexpensive bundles available at launch.
Cowen & Co. estimates 19.4 million consumers subscribe to both Netflix and Disney, suggesting an 80% overlap between the services. So people don’t necessarily seem to be picking The Irishman or The Mandalorian, but going with both.
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