DENVER, Colo. (August 10, 2017) – Here at iModerate, we’re huge fans of digital streaming, so when we heard Disney was cutting ties with Netflix, we immediately wondered what this would mean for the average streaming customer. Would losing “the house of the mouse” drive customers away from the king of streaming?
We reached out to our nationwide panel, gathering 1,180 responses in around four hours. Their response to Netflix was clear: Don’t worry about it.
More than 92% of our consumers responded that the loss of Disney would not make them consider cancelling their Netflix accounts, with nearly 60% of them saying they’d be very unlikely to cancel— talk about customer loyalty! We asked them what they’d say to CEO Reed Hastings if they had the chance, and overwhelmingly they offered not criticism but praise.
“Don’t let it bother you. The majority of people that have Netflix don’t use it for Disney programming.” – New Jersey
“I would not cancel Netflix over the loss of Disney, but the loss would be disappointing, nonetheless. We already have so many different services and places to go to when we are looking for our favorite programming, and I am not on board with paying for another subscription service. I will not be subscribing to Disney’s standalone streaming service.” – California
So what does this audience think about Disney’s proposed streaming service? Unfortunately, customers just don’t see either a Disney or ESPN streaming service as a valuable competitor to the dominant Netflix. Less than 9% of respondents indicated they would fork over the same $9.99 they do for their monthly standard Netflix plan for Disney content, with even fewer willing to pay for an ESPN streaming service.
“Interestingly, we saw very little change in the data when we segmented by households with and without children. Our assumption was that the removal of Disney content from Netflix would have a significant negative impact on parents and kids, but our findings indicate only a marginal increase in those who said they were either very likely or somewhat likely to cancel their Netflix subscription,” said Katee George, Research Manager at iModerate’s parent company 20|20 Research. “We saw little variation in overall sentiment in the qualitative commentary for parents of children, with many stating that Netflix maintains a wide variety of shows for kids of all ages and that Disney content wasn’t a critical component of the kid-friendly option on the service.”
Not much is known about the planned Disney and ESPN streaming products, and the final solution may be much more appealing than what the consumers assume today. Top of mind reactions, however, make it clear that Netflix has a dominant position, and this week’s announcement by Disney did little to cause users to question the value of the streaming juggernaut.
For more information about this quick-turn nationwide study, or for access to our full insight report, contact us at [email protected]
iModerate is a progressive insights agency that empowers clients to take decisive, proof-based action that drives revenue growth and transforms brands. The company pairs powerful cognitive techniques with the latest digital research methods to help companies identify nuanced intelligence that revolutionizes their thinking and gives them an edge. Since 2004, iModerate has conducted hundreds of thousands of engagements, analyzed vast amounts of consumer commentary, and helped over one-third of the Fortune 500 move their brands forward. In 2016, iModerate joined 20|20 Research, a leading provider research services and technology.