The $6.99 pricing that Disney has announced for its Disney+ streaming service in the US is going to have significant implications for how consumers value other D2C services and the prices that rivals can charge in future, Colin Dixon, Founder and Chief Analyst at nScreen Media, reckons. In analysis you can see here, Dixon says Disney is setting a new low price bar for premium online video services.
“Like it or not, consumers will use it as a yardstick to judge the value of other services. TV executives might not like how they fair in the comparison.”
He uses CBS All Access as an example of a D2C offering that, at $6.99 a month with advertising and $10.99 without, appears good value to consumers today but may not once Disney+ launches. Dixon believes the Disney pricing will limit what Discovery can charge for its new natural history and factual SVOD offering, for example.
Dixon highlights a danger that he thinks channel owners must confront if they want to live outside the Pay TV bundle. “As TV providers enter the DTC market, consumers will have the opportunity to assess that content’s unique value for the first time. Previously, there was no real way to assess its value within the big Pay TV bundle.”
More analysis from nScreen Media here.