ADVERTISEMENT

Disney+ is launching its domestic and international services simultaneously (DIS)

Although the Disney brand has global recognition, it likely selected these initial international markets because they're relatively similar to the US.Canada is more culturally similar to the US compared with Japan, for example. As a result, these markets will likely require fewer resources like translation or subtitling to ready the service for launch. Disney+'s first international market launches are also targeting regions where SVOD is on the rise.

Streaming Service Brand Awareness Versus Understanding Of The Value Prop

Here's a breakdown of the SVOD landscape and market opportunity that Disney will enter in each of these markets:

  • Canada.As of 2018, 58% of Canadian households had at least one SVOD subscription, making for about 11.3 million total subscriptions, per Futuresource Consulting. And SVOD is gaining even more traction: Consumer spend on SVOD is expected to comprise 17% of all video entertainment spend by 2022, up from 9% in 2018. Netflix dominates the market with 6.3 million subs, compared with the next-closest service Crave at 2.3 million .
  • Netherlands.The country's SVOD market is dominated by Netflix, with 39% of consumers holding a subscription to the service as of Q4 2018, and it's grown consistently since it launched in 2013. The country could be hurting for a new competitor, as local companies have called it quits against the streaming giant, and growth has slowed a bit in recent quarters as the consumers who wish to have Netflix already do.
  • Australia.There are now 10.2 million paid SVOD subscribers across the country, with 52% of the population under 45 years old paying for streaming services in 2019, per AMPD Research. Netflix leads the market with an estimated 5.3 million Australian subs, more than three times as many as the native SVOD service Stan, with 1.4 million subscribers.
  • New Zealand.About 3 million of the country's citizens about 63% of its population have access to pay-TV and subscription video services. There are quite a few competitors, but only Sky TV and Netflix have driven notable uptake, with the latter accounting for two-thirds of all SVOD subscribers in the country as of August 2018, per Roy Morgan. And Netflix saw significant growth year-over-year between 2017 and 2018, with subs rising 35% to hit 2 million total in New Zealand.

International SVOD markets without significant native competition could actually see movement when Disney+ enters.Thanks to its powerhouse slate of well-known brands spanning Disney, Pixar, Marvel, and Star Wars, Disney+ is already an enormously compelling new SVOD entrant.

As a result, in markets where Netflix is the dominant SVOD, Disney+ may have a better chance at unseating or complementing it in SVOD households. Rolling out the service in several markets will also supply Disney with more data on market-specific usage and preferences across the globe, enabling it to better adapt its service and create a more localized and sticky user experience.

ADVERTISEMENT

As Disney continues its international push for Disney+, it will likely assess its penetration in less SVOD-saturated markets to design its rollout strategy over the next two years.

Interested in getting the full story? Here are three ways to get access:

  1. Sign up for the Digital Media Briefing to get it delivered to your inbox 6x a week. >> Get Started
  2. Subscribe to a Premium pass to Business Insider Intelligence and gain immediate access to the Digital Media Briefing, plus more than 250 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now
  3. Current subscribers can read the full briefing here.

See Also:

Enhance Your Pulse News Experience!

Get rewards worth up to $20 when selected to participate in our exclusive focus group. Your input will help us to make informed decisions that align with your needs and preferences.

I've got feedback!

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.com.gh

ADVERTISEMENT