Disney’s OTT Builds Anticipation Among MillennialsDisney is set to launch its own streaming service in 2019 fueling the growing popularity of OTT. Studies are showing that consumers are increasing the number of streaming services they subscribe to, with Millennials being the biggest demographic partaking.
A recent survey by Morning Consult confirms that 36% of users between 18 to 29 years old are more than ready to subscribe to Disney’s streaming service once launched. It's simply the next step, as Millennials are already onboard with streaming and don't mind paying to use several streaming apps.
Adding another streaming app fits into the Millennial lifestyle, with 48% already subscribing to many streaming apps versus 28% who only subscribe to one. The biggest competition Disney faces is Netflix (52%) and Amazon Prime (26%) who currently dominate the market, followed by newbie YouTube TV and Hulu (each capturing 23% of users).
Millennials are more than willing to pay for Disney’s streaming service as trends show the number of services they subscribe to for TV viewing and movies is increasing.
Millennials Increase Media Usage Across Multiple Mediums
The number of viewers moving to online streaming has increased by 10% over the past few years in the U.S., with 19% subscribing to more than two or three services. As Millennials abandon traditional TV in lieu of streaming, they benefit from bundling multiple streaming services rather than just being stuck with one.
To further support evidence that Millennials are willing to pay for multiple subscription services, nearly 60% of Millennials use two or more apps for streaming music, per a recent Nielsen study. The Millennial generation enjoys the flexibility of having multiple platforms for their viewing pleasure, and are apt to add more as time goes on.
The Disney streaming service would be no different and would be a welcome addition to the video watching bundle that so many Millennials' value. A whopping 55% of video streaming users said they would subscribe to a streaming service for a specific show, demonstrating that Netflix is moving in the right direction by investing $7 billion into its content, especially in light of Disney's OTT market entry. One challenge that Disney currently faces is connecting with Millennials and their children at the right price point. Disney and Pixar films will be included in the subscription with other original content, but the full content mix is yet to be determined, leaving the final subscription cost up in the air.
Disney’s OTT Connects Advertisers + MillennialsAdvertisers are interested in Disney’s streaming app as it will give them the ability to reach Millennials without all the problems YouTube has recently dealt with in showing inappropriate content. Disney will be able to reach the Millennial generation and provide content that is "brand-safe". Disney, via it’s Disney Digital Network (DDN), is setting itself apart from the competition like YouTube as a safe alternative for OTT viewing.
The Disney Digital Network has a significant viewing audience of 1.3 billion, demonstrating its reach and ability to connect with Millennials. Advertisers are being charmed by Disney’s “brand-safe” appeal and are hooked by the results generated just in the past year working with the DDN.
Looking ahead, Disney hopes that through its streaming service, Millennials and their kids will be more likely to buy Disney related products such as apparel, mugs, and towels.
The newest member of the DDN brand family is Disney Eats which celebrates the food served at Disney parks. Disney Eats will foster content and videos focusing on families with kids. Content will range from videos of food influencers, how-to cooking ideas and culinary adventures from around the world that are featured at Disney Parks.
Disney’s streaming service is expected to be a winner in both the minds of Millennials and advertisers. It demonstrates that OTT is taking over, a natural progression of cord-cutting. Millennials want to have experiences with brands directly, not just en masse via Netflix or Amazon Prime Video, and OTT is a great way to do it (visual / video + direct experience).