Driving insane brand equity

Updated On: February 12, 2020
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Today, Disney+ and The New York Times see strength in subscriber numbers. Plus, Tien Tzuo considers: Will 2022 be the last year of television as we know it? 

 

 

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“Disney+ is an undeniable juggernaut.”

This statement is, frankly, what every streaming service would like to read about itself.

And for Disney+ this is the reality. NASDAQ published a report on Disney+ earning a subscription price hike. With 26.5 million subscribers and an insane brand equity with fans, CEO Bob Iger said the Disney+ launch "exceeded even our greatest expectations."

But how did they get here?

Bob accredits a uniqueness in service, an excellent user interface, and the high quality of its brands and content for the blockbuster start.

But the folks at NASDAQ look to the price point. “One occasionally overlooked factor in Disney+'s breakneck growth is the service's bargain price point [$6.99 per month].” 

And if customer loyalty is any indication of Disney+’s price point, they could likely turn to value-based pricing as opposed to competitive. With it, you can price higher than your competitors because you’re basing the pricing off of what customers say they’re willing to pay. If they’re willing to pay higher than what your competitor is charging, then that means more money in Disney’s pocket. 

We’re keen to see what they do with this. If you’re intrigued by value-based pricing yourself, here are some of our best resources on the topic:


Subscribers > ads

In more subscriber growth news, The New York Times also reports strong subscription growth.

Revenue has risen 1.1% for The Times, to $508.4 million, driven by a 4.5% increase in subscription revenue and a 30% rise in other revenue. Mostly coming from its new television program, “The Weekly,” and licensing revenue from Facebook News.

But overall ad revenue has fallen 11% for the NYT, to $171.3 million. Revenue from digital advertising declined 11% as well, partially offset by growth in podcast advertising, the company said. Print advertising revenue fell the same percentage.

So what’s the publication to do? Focusing on subscriber numbers could be its play. We thought its increase in digital subscription price, which we reported on just last week, could be a classic case of pricing power. But it seems The New York Times could actually be grasping for a much-needed increase in revenue. 

We’ll keep our eye out on this one to see which tactic its team actually has in place. 


The end of TV as we know it?

And back to streaming television: Zuora’s Tien Tzuo says 2022 could see the end of traditional (broadcast) TV as we know it.

In 2013 there were over 100 million households with a traditional cable or satellite TV subscription. Today it’s around 85 million, and sinking fast.

So why 2022? Because it’s the year most of the NFL’s current media deals are set to expire.

But now, the networks have serious competitors, and in just two years, there will be all sorts of big digital media companies interested in showing NFL games: think Apple, Google, Hulu, Facebook, Disney, DAZN.

But who knows? Perhaps the NFL will launch its own streaming service and capitalize on a seriously interested market.

Time will tell, and as always, our eyes are peeled. What are your thoughts on Tien’s idea here? Makes a whole lot of sense to me, but I’m interested in your take. Send me your thoughts to abby@recurnow.com and we’ll chat. 

Pricing Page Teardown: Disney+ vs. Netflix


Netflix and Disney are two entertainment titans with very different backgrounds. Netflix shot from obscurity to become a multibillion-dollar company in a span of 20 years. Disney is a household name that has kept on innovating and keeping up with the times over the last century.

But now that Disney+ is seemingly dominating its streaming goals, check out what Patrick and Peter predicted for these two back in 2019 (and how correct they really were). 

 


And that’s a wrap for your February 12 subscription news. Recruit your teammates into the subscription know at recurnow.com.

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