Like all streaming services, Disney+ saw strong growth during the pandemic but competitor Netflix reported losing subscribers last quarter. But Disney+ is cheaper than Netflix – an increasingly important distinction in the current economy, said research director Paul Erickson at Parks Associates.
And it also has a very different portfolio. Where Netflix has a little bit of everything for everyone, Disney focuses on a few very popular brands: animation, Star Wars and the Marvel Cinematic Universe.
“It does engender different styles of viewing, right? Like you have some dyed-in-the-wool Marvel fans that watch titles incessantly,” Erickson said.
Or, you know, kids who can’t “Let it Go” before they’ve seen “Frozen” a zillion times. That cuts down on subscriber churn – and so does the release schedule, said Michael Pachter, an analyst at Wedbush Securities.
“You know ‘Obi Wan’ comes at a different time, then ‘The Mandalorian’ comes at a different time, then ‘Boba Fett’ … every 10 weeks, there’s something,” said Pachter.
And by releasing episodes weekly instead of in one bingeable dump, Disney+ keeps subscribers on the hook.