Streaming services have revolutionized the way we consume media, and in recent years, two giants have emerged as the leaders of the pack: Netflix and Disney+. According to recent reports, Netflix dominates the OTT video
market, accounting for a significant portion of U.S. OTT viewing hours. Meanwhile, Diesel Labs' 2021 streaming industry trends report reveals Disney's triumph in audience engagement. But what is it about these two services that set them apart from the rest? In this article, we explore the reasons behind Netflix and Disney's success and examine how they continue to dominate the streaming world. So buckle up and get ready for an insightful analysis of why Disney is beating everyone in engagement,
but Netflix is still king.
While Netflix continues to dominate the OTT video market, new reports show that Disney is currently beating everyone in engagement. However, despite Disney's triumphs, Netflix remains the king of streaming. In this article, we'll explore why Disney is excelling in engagement, but ultimately why Netflix's reign continues to hold strong. So, grab your popcorn and
let's dive into the world of streaming!
When it comes to the OTT video market in the US, Netflix has long been the reigning champion. According to ComScore, Netflix accounts for 40% of all U.S. OTT viewing hours, which is more than Amazon, YouTube, and Hulu's shares combined. Netflix also leads in terms of penetration in Wi-Fi households, with Hulu leading the charge in terms of average
viewing hours per month per household and engagement with viewers. Despite other SVODs outpacing Netflix in engagement times among viewers, Netflix is still likely out front in terms of the popularity of its original series, with a study by Parrot Analytics showing that demand for Netflix originals is on average 8 times higher than that for Amazon's originals.
According to ComScore, Netflix
has consistently been the leader in the US OTT (over-the-top) video market, with a share of over 40% of total viewing hours in recent years. This dominance has put Netflix in a comfortable position, but the company faces competition from other streaming services such as Amazon, Hulu, and YouTube. Despite the competition, Netflix has managed to maintain its lead through strategic investments in content and marketing.
According to a report by eMarketer, Netflix's dominance in the OTT video market is undeniable. In fact, Netflix's share of OTT viewing hours in the United States accounts for nearly one-third of all time spent watching streaming video. To put this into perspective, Amazon, YouTube, and Hulu combined only make up about 25% of total OTT viewing hours. Clearly, Netflix is leading the pack in terms of viewership.
In addition to its impressive share of viewing hours, Netflix also boasts a significant lead in the number of households with Wi-Fi that use the platform. According to a study by Cowen & Co, 69% of Wi-Fi households in the US had a Netflix subscription in 2021, compared to Hulu's 34% and Amazon's 26%. This strong penetration in households with Wi-Fi has helped solidify Netflix's position as a major player in the OTT video
market.
Despite Netflix's dominance in terms of OTT viewing hours, Hulu has been leading in terms of average viewing hours per month per household and engagement with viewers. In a recent report by Hub Research, Hulu subscribers were found to spend an average of 2.9 hours per day watching the service, while Netflix subscribers watched for 2.2 hours per day. Additionally, the report found
that Hulu subscribers were more likely to engage with their service by commenting on shows or sharing recommendations with friends. These findings suggest that although Netflix may be winning in terms of overall usage, Hulu is still able to capture the attention and loyalty of its viewers.
According to a recent study by Parrot Analytics, Netflix is the clear winner when it comes to the
popularity of original content. The study found that Netflix originals, such as "Stranger Things," "The Crown," and "Ozark," consistently ranked higher in audience demand compared to original content from other streaming services. Netflix's ability to produce and distribute high-quality content has been a key driver in its success in the streaming market.
Disney+ has been giving other
streaming services a run for their money since its launch in 2019, and a Diesel Labs report shows that Disney+ has been the most engaging streaming service of 2021. The report found that Disney+ had the highest average engagements per user among the top streaming services, including Netflix, Hulu, Amazon Prime, and HBO Max.
In addition, Disney's new "engagers" (titles that drive engagement)
outperform those of other streaming services. Compared to other services, Disney's "engagers" have a higher average engagement score per title.
Disney has also dominated the action and adventure genre, which is a popular category among streamers. In the first half of 2021, Disney+ accounted for almost 75% of the top ten most engaging action and adventure titles.
According to a recent study by Publishers Clearing House’s market research division, PCH Consumer Insights, over 35% of adults between the ages of 18-54 stream Disney's major subscription services, including Disney Plus, Hulu, or ESPN Plus, more than once a month on a connected TV device. This study challenges Nielsen's monthly U.S. TV viewership share graphic, "The Gauge," which has become a measuring
stick in the tech-media business for measuring streaming usage and which platforms are considered relevant industry forces. However, the study revealed that some relevant streaming platforms, such as Paramount Plus and The Roku Channel, were missing from The Gauge, and the methodology and sample size were unclear.
Moreover, PCH's demo comparison based on viewing platform category shows that
younger subscription streaming users tend to sign up for a service to binge on a specific show or movie and then cancel the platform when finished, while adults between the ages of 45-54 favor traditional pay TV. These findings suggest that viewer age is an essential factor when delivering actionable consumer insights on the streaming video business.
In addition to challenging Nielsen's
metrics, PCH Consumer Insights is positioning itself as an alternative to research incumbents such as Nielsen, ahead of the upcoming "NewFronts" and "upfront" advertiser pitches to Madison Avenue. PCH's market research division is backed by a database of tens of thousands of consumers, with veteran PCH executive Smriti Sharma leading the new division and high-profile digital media influencer Evan Shapiro serving as a liaison to the TMT community.
Furthermore, Disney+ had the highest share of original content releases among streaming services in 2020. This contributed to the service's high engagement levels. Disney+ also had the highest share of original content engagement, with more than 40% of all engagement going towards Disney+ originals.
Finally, Disney+ has managed to
attract engaged audiences that overlap with Netflix and HBO Max. Among viewers who have engaged with both Disney+ and Netflix, Disney+ accounted for 21% of their total engagement hours, while HBO Max accounted for only 7%.
Disney+ has been giving other streaming services a run for their money since its launch in 2019, and a Diesel Labs report shows that Disney+ has been the most engaging
streaming service of 2021. The report found that Disney+ had the highest average engagements per user among the top streaming services, including Netflix, Hulu, Amazon Prime, and HBO Max.
In addition, Disney's new "engagers" (titles that drive engagement) outperform those of other streaming services. Compared to other services, Disney's "engagers" have a higher average engagement score per
title.
Disney has also dominated the action and adventure genre, which is a popular category among streamers. In the first half of 2021, Disney+ accounted for almost 75% of the top ten most engaging action and adventure titles.
Furthermore, Disney+ had the highest share of original
content releases among streaming services in 2020. This contributed to the service's high engagement levels. Disney+ also had the highest share of original content engagement, with more than 40% of all engagement going towards Disney+ originals.
Disney+ has managed to attract engaged audiences that overlap with Netflix and HBO Max. Among viewers who have engaged with both Disney+ and
Netflix, Disney+ accounted for 21% of their total engagement hours, while HBO Max accounted for only 7%.
While Netflix and Disney are the undisputed titans of the streaming world, other services are also growing rapidly in terms of engaged audiences. According to recent reports, Peacock, Apple TV+, HBO Max, and Disney+ have all experienced significant growth in terms of audience
engagement.
Comparing the volume-wise success of HBO Max and Disney+ to Peacock and Apple TV+, it's clear that the former two are the most dominant players. However, Peacock and Apple TV+ have still managed to attract significant audiences and are expected to continue growing in the coming years.
In terms of established services, Amazon Prime Video and Hulu have also experienced growth in their engaged audiences, though not at the same rate as some of the newer services.
One interesting trend to note is the overlap of audiences between streaming services. For example, many viewers of Disney+ are also engaged with Netflix and HBO Max, indicating that viewers
are not necessarily loyal to just one service. This overlap provides insight into the competition between services and the need for companies to continually innovate and release new content to keep audiences engaged.
The success of streaming services such as Netflix and Disney+ can largely be attributed to their use of existing intellectual property (IP) and franchises to drive audience
engagement. This includes shows and movies based on popular books, comics, and other media that already have a built-in fanbase. Disney+ in particular has benefited from this approach, with their Marvel and Star Wars franchises proving to be massive hits.
However, simply relying on existing IP is not enough. The way content is released also plays a crucial role in audience engagement.
Netflix has shown success in releasing entire seasons of shows at once, allowing audiences to binge-watch at their own pace. Meanwhile, Disney+ has taken a more traditional approach, releasing episodes on a weekly basis to keep viewers coming back for more.
Despite Disney's success in engagement, Netflix remains king in terms of overall streaming dominance. This is partly due to the sheer
volume of content that Netflix releases, as well as their willingness to take risks on new and original content. Additionally, Netflix has a global reach that allows them to tap into audiences across multiple regions.
While Disney may be beating everyone in engagement thanks to their use of existing IP and franchises, Netflix still reigns supreme in the streaming world. The value of existing
IP and the importance of varied approaches to releasing content cannot be ignored, but ultimately, it is the combination of these factors that leads to success in the highly competitive streaming market.
Netflix and Disney continue to dominate the streaming world, with each service boasting impressive statistics in terms of engagement and growth. While Netflix maintains its position as
the king of the OTT video market, Disney has emerged as a worthy challenger, with its emphasis on engagement paying off in a big way.
The competition between streaming services is fierce, and audience engagement is the key factor in determining who comes out on top. As the market evolves, it's clear that the value of existing IP and franchises cannot be overstated, and that varied approaches
to releasing content are essential in driving audience attention and engagement.
Ultimately, the battle for streaming supremacy will continue to rage on, with Netflix and Disney leading the charge. As long as these services continue to prioritize engagement and invest in quality content, they will remain at the forefront of the industry.
