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            launches into the US market in            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 flat – an early indicator of a peaking attention economy, so the new challengers need to maximise their unique selling propositions (USPs) to gain traction in a congested market.

Key Findings

• Disney+ launches            November            with a strong international,            originals-focused growth strategy 
• Warner Media            its own            proposition beta in            followed by a full launch            2020 with a focus on            and original content
• Apple TV+            in fall 2019 with a            led originals strategy leveraged by            iOS ecosystem
• Warner Media            the highest share of the            popular shows with            of the            ten shows in            2018
           of US consumers have multiple video subscriptions 
• SVOD penetration            highest among            year olds at           
• Cord cutters            the highest fandom for Friends,            most popular US Show in           
           of US Netflix subscribers have multiple SVOD subscriptions            of US Amazon Prime bill payers have a Netflix account, down from            in            2018, compared to            of Hulu subscribers, also down from            in            2018
• Netflix’s subscriber            declined between            despite a            increase            annual content expenditure in 2018            2015
• Success for            and Warner Media will depend            their ability to leverage their            advantages
• Disney needs            use its brand equity to            its mainstream family appeal for           

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