Anurag Bala · Follow
6 min read · Oct 7, 2023
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- Market Share: As of Q2 2023, Disney+ has only 13% of the market share in the United States, while one of its competitors, Netflix, has a market share of 20%. In India, however, Disney+ has a massive 27% market share, while Netflix has 12%.
(source: JustWatch) - Demographic Information: According to Morning Consult, 52% of Netflix users are female, while 48% of all Netflix users are male. Netflix is far more popular among younger consumers than among older generations, with 75% of the users being 18 to 34-year-olds and 72% of 35 to 44-year-olds claiming to have a Netflix subscription. The majority of Netflix users in the United States are from the suburbs (43%), the least (23%) are from rural areas, and urban users account for 34% of all users.
And for Disney+, Males account for 55% of Disney+ subscribers in the United States, with females accounting for the remaining 45%. 45% of Disney+ subscribers are under the age of 18. People aged 18 to 34 account for 25% of Disney+ subscribers. Suburban areas account for 45% of Disney+ users. And 38% come from cities. Disney+ has 20% of its users from rural areas. - Geographic Availability: Netflix, which is older than Disney+ in the SVoD market, serves well over 190 countries. According to the press release, Disney+ is only available in 60 countries.
- No. of contents available: Disney+ has over 15,000 TV series episodes and 500 films worldwide. As of October 2022, Netflix had over 17,000 titles worldwide.
(Data from uNoGS) - No. of subscribers: Netflix has a larger subscriber base than Disney+. Netflix has 238.39 million subscribers as of Q2 2023, while Disney+ has over 146.7 million subscribers worldwide.
- Revenue: In terms of revenue, both Disney+ and Netflix are performing similarly. As of July 2023, Disney+ had a global revenue of $16,346,000,000 ($16.346 billion), while Netflix had a revenue of $16,348,804,000 ($16.35 billion). However, at $18,570,000,000 ($18.57 billion) and $13,556,074,000 ($13.56 billion), Disney+’s total expenses dwarf those of Netflix. This results in a $2,224,000,000 ($2.22 billion) operating loss for Disney+ and a $2,792,730,000 ($2.79 billion) profit for Netflix. As a result, Netflix is more profitable than Disney+.
(source: Disney+ and Netflix’s Quarterly Earnings reports)
- Pricing: Disney+ has straightforward subscription plans. Disney+ Basic, its most affordable and ad-supported plan, costs $7.99/month, and Disney+ Premium, which costs $10.99/month or $109.99/year, allows subscribers to stream Disney+ without ads and download its content to watch offline. However, Disney+ has announced that the price of its premium plan will rise to $13.99 per month or $139.99 per year. The monthly and yearly plans both increased by about 27%.
Netflix’s Standard Ad-supported plan costs $6.99 per month and supports two devices at the same time, while its Standard plan costs $15.49 per month. The main distinction is that this plan is ad-free, and subscribers can download content on two devices. The maximum resolution for both Standard plans is 1080p (Full HD). Its Premium plan costs $19.99 per month and is ad-free. Subscribers can watch on up to four devices at the same time, download on up to six devices, and enjoy numerous other benefits.
Netflix’s ad-supported plan is more affordable than Disney+’s ad-supported plan, but Disney+’s premium plan is more affordable than Netflix's.
- Average Revenue Per User (ARPU): Disney+ has an ARPU of $6.80 for the United States till Q3 2023 and $0.64 for Disney+ Hotstar. Netflix’s ARPU is roughly $16.09 in the United States and $7.84 in APAC.
- User Experience: When compared to Netflix, Disney+’s user interface is significantly cleaner, yet this leads to a lack of details that customers may use to determine before clicking on a movie. When a user hovers over a movie title on Disney+, the thumbnail size grows and a white border is added, but that’s it; there’s not much information about the movie until we click on it. Netflix’s design, on the other hand, places a strong premium on interactivity. Play and Add to My List action buttons below the recommended content facilitate and promote engagement. Disney+ relies a significant portion of its app design on web UX, which may not transition well to touch-based mobile interactions. The language switching tab, on the other hand, presents all possible dubs and enables fast language selection before playing the material. This caters to multilingual consumers and may do well in terms of boosting click-throughs from a broad user base. The Netflix app is extremely user-friendly and optimized for mobile and touch interfaces.
Competitive Analysis:
Several SVoD services, in addition to Disney+ and Netflix, are available internationally, including Amazon Prime Video, HBO Max, Hulu, Paramount+, and Apple TV+. Amazon Prime Video has a 21% market share in the United States, beating both Netflix and Disney+. HBO Max and Hulu are tied for fourth place with 14% market share apiece. Apple TV+ has a 6% market share, whereas Paramount+ has a 7% market share.
There is fierce rivalry in the worldwide Subscription Video-on-Demand (SVoD) sector. Amazon Prime Video and Netflix, the two major platforms, are always competing for new subscribers.
A look at Amazon Prime Video:
Amazon Prime Video is a video streaming service that is only available to Amazon Prime members. It is an Amazon Prime business division and a paid subscription service founded, owned, and operated by Amazon.com, Inc. Except for mainland Iran, China, Syria, and North Korea, Amazon Prime Video currently provides unlimited ad-free streaming of Amazon Originals, premium movies, and TV shows around the world.
Data and Insights about Amazon Prime Video:
- Market Share: According to JustWatch, Amazon Prime Video has a 21% market share in the United States.
- Demographic Information: 57.04% of the platform users are male, while 42.96% are female. The 25–34 age group uses Prime Video the most (32.23%).
- Geographic Availability: Prime Video is available worldwide (except for Mainland China, Iran, North Korea, Russia, Belarus, and Syria).
- No. of contents available: Amazon Prime Video has one of the largest libraries with 26,300+ movies and 2,700+ TV shows.
- Revenue: Amazon registers $19.551 billion in revenue from retail subscription fees till Q2 of FY23.
(source: Amazon) - Pricing: Current Amazon Prime membership pricing:
1) $14.99 per month
2) $139 per year
3) Prime Video membership is $8.99 per month - User Experience: Prime Video has a clean and intuitive interface with personalized recommendations, but it can be slightly cluttered at times, and content depth and variety may be lacking.
In summary, the streaming market is marked by fierce competition, with Disney+ and Netflix adopting different strategies to cater to their target audiences. While Disney+ enjoys significant success in India and attracts a younger demographic, Netflix maintains a stronghold in the United States and offers a more extensive content library. Both services generate substantial revenue, with Netflix emerging as the more profitable option due to efficient expense management.
