Disney+ earned about 24 million subscribers as of late November, which ended up taking some subscribers away from competing streaming service, Netflix. I think there’s a lesson for integrators here about AV service revenue… but I’ll get to that.
Variety cites research company Cowen & Co., who took a survey of 2,500 U.S. consumers and found 21% of them said they signed up for Disney’s new streaming service in November. According to that research, that number surpassed Wall Street forecasts for how well Disney+ would do in its first month.
More from Variety:
Cowen & Co. estimated that Disney Plus will result in about 1 million additional U.S. Netflix customers cancelling service for the fourth quarter of 2019. All told, about 5.1 million Netflix subs in the States will bail in Q4, but the higher churn “appears manageable” for Netflix, Cowen analysts led by John Blackledge said in the report issued Wednesday.
What integrators can learn from this
Obviously, no integrator can expect to have the same rate of signup success in terms of AV service revenue that Disney received for their entertainment streaming service. You don’t sell access to classic movies and TV shows, you sell solutions for specific markets.
Read Next: Pricing, Selling, & Implementing Pro AV Service Revenue
But there are business lessons to take away from this. Look at how Disney tempted customers over to their service:
- They partnered with fellow service provider Verizon to offer one year free for certain customers
- They kept costs to the consumer low, but also offer upgrades for greater needs
- They took their time to develop strong new content as well as old to tempt “free trialers” into staying
While you’re not about to offer your clients free trials for AV services, you should be looking to dominate in the field of AV service revenue… If you don’t, someone else will. Can you apply the above lessons to your business model at all?
