Direct to Consumer | Video’s Big Bang Moment

The 20,000 Foot View: 2019 marks the biggest shift in the US video market since Netflix’s pivot into streaming in 2007. Apple, Disney and AT&T-owned Warner Media are preparing for their direct-to-consumer (D2C) launches into the US market in Q4 2019/Q1 2020. How they fare will have a significant impact on the global evolution of video subscriptions. They will also provide the first serious domestic competition to Netflix, Amazon and the rising fortunes of Hulu’s blended subscription and ad-supported model. However, streaming video on demand (SVOD) X penetration is flat, an early indicator of a peaking attention economy, so the new challengers need to x to gain traction in a congested market.


Key Findings

  • Disney+ launches on November 12th with a strong X growth strategy
  • Apple TV+ launches on November 1st 2019 with a X-led X strategy leveraged by its X
  • Warner Media will launch HBO Max in Q1 2020 with a focus on X
  • NBCUniversal will launch Peacock – a TVE, AVOD hybrid with sports programming, in April 2020
  • Warner Media has X share of the most popular shows with X% of the top ten shows in Q4 2018
  • X% of US consumers have multiple video subscriptions
  • SVOD penetration is highest among X year olds at X%
  • X have the highest fandom for X, the most popular US Show in Q2 2019
  • X% of US Netflix subscribers have multiple SVOD subscriptions
  • X% of US Amazon Prime bill payers have a X account, down from X% in Q4 2018, compared to X% of X subscribers, up from X% in Q4 2018
  • X’s subscriber hours declined between 2015-2018 despite a X% increase in annual content expenditure in 2018 from 2015
  • Success for Apple and Warner Media will depend upon their ability to leverage their X
  • Disney needs to use its brand equity to leverage its mainstream family appeal for Disney+

Companies and brands mentioned in this report:  Amazon Music, Amazon Prime Video, Apple Music, Apple, Apple TV+, AT&T,CBS, CBS All Access  Comcast, Disney, Disney+, ESPN+, HBO Max, HBO Now, Netflix, Spotify, Warner Media

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Words: 4,048

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