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 Q3/Q4 2019. 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) weekly active user (WAU) penetration is X, an early indicator of X, so the new challengers need to maximise their unique selling propositions (USPs) to gain traction in a congested market.

Key Findings

  • Disney+ launches on November 12th with a strong international, ad-free, originals-focused growth strategy
  • Warner Media launches its own D2C proposition beta in Q4 2019, followed by a full launch in 2020 with a focus on library and original content
  • Apple TV+ launches in fall 2019 with a show-maker led originals strategy leveraged by its iOS ecosystem
  • 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%
  • Cord cutters have the highest fandom for X, the most popular US Show in Q1 2019
  • X% of US X subscribers have multiple SVOD subscriptions
  • X% of US Amazon Prime bill payers have a X account, X from X% in Q4 2018, compared to X% of Hulu subscribers, also X from X% in Q4 2018
  • Netflix’s subscriber hours X between 2015-2018 despite a X% X in annual content expenditure in 2018 from 2015
  • Success for Apple and Warner Media will depend upon 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 Now, Netflix, Spotify, Warner Media

Charts: 6
Pages: 19
Words: 3745

Includes Synopsis, PDF, Slides and Dataset