Disney+ announced during its Q1 2020 earnings call that it reached 94.9 subscribers – a target that was initially aimed to achieve by 2024. The “House of Mouse” shattered every record set by Netflix, Amazon, and other players of the SVOD (subscription video-on-demand) market. If you too are curious like us to understand the reason behind this incredible success of Disney+, keep reading.
The Walt Disney Company was founded in October 1923 by none other than Walt Disney himself. Soon to become century-old, this company has found success that is unlike any other media and entertainment brand in the world.
Disney+ is smashing streaming subscriber expectations in unbelievable numbers. While 94.9 million subscribers is the official number, the real count is probably higher. Seeing this incredible growth, it has now revised its future expectations and aims to reach 230-260 million subscribers by 2024.
Speaking about the massive earnings, Christine McCarthy, Disney CFO, said the executives were “really happy with the conversion numbers that we’ve seen there going from the promotion to become paid subscribers.”
Usually brands rely on different marketing models when they are entering new markets. However, marketing alone can never fetch such impressive results.
Let’s explore what is truly working behind the incredible success of Disney+ quarter after quarter.
Rising demand of SVOD services
A surge in subscriptions can be directly attributed to the rising appeal of SVOD services due to the pandemic. COVID-19 helped increase the user base of many service providers by forcing people into lockdowns and quarantines.
Homebound, and with nothing new to watch on televisions, users resorted to streaming services instantly. Since many were new to this domain, a world of fresh content was available at their fingertips.
This new domain easily appealed to a large number of people who have never tried anything beyond TVs before. Demand kept on growing, and so did streaming services.
Disney was quick in understanding the potential of this domain and launched it in November 2019.
Deep discounts and offers
At launch, Disney+ started with a free weekly trial and a monthly subscription amount of as low as $4.72.
Its rock-bottom prices certainly drove employees and business owners hit by furloughs and recession respectively.
As a result, Disney+ easily reached 33.5 million subscribers by March 2020.
Intelligent and timely mergers
Another boost to Disney Plus’ growth could be due to its timely collaboration with SVOD service providers of other countries. For instance, it decided to integrate with Hotstar, India’s numero uno SVOD service.
Disney Plus’ collaboration with Hotstar kept the subscribers meter running at a robust pace. By the end of the second half of fiscal 2020, Disney Plus’ subscribers count was 73.7 million.
Additionally, Disney+ has stayed true to its brand by supporting and producing great content. The enormity of brand Disney coupled with great web shows is leading to this incredible success of Disney+.