Disney+'s first two months are unprecedented

USA TODAY | 1/20/2020 | Staff
ArceusArceus (Posted by) Level 3
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Disney's streaming service got off to a stellar start on day one, with 10 million sign-ups.

It carried that momentum through the first month following its launch, garnering around 28 million downloads, according to data from SensorTower. Another 31 days later, SensorTower says smartphone users have downloaded the Disney+ app 41 million times, counting an additional 13 million users.

Slowdown - SensorTower - % - Downloads - Disney+

While that might sound like a steep slowdown, SensorTower compares the 33% of total downloads for Disney+ in month two to AT&T's HBO Now app, which saw 29% of its downloads through the first two months following its launch come in the second half of the period.

Disney+'s momentum was fueled by the popularity of "The Mandalorian" after initial sign-ups brought in Disney fans attracted to its back catalog of film and television titles. But now that the first season has ended, can Disney maintain the momentum in Months 3 to 12?

Alongside - Download - Estimates - SensorTower - Purchase

Alongside its download estimates, SensorTower provided in-app purchase estimates. Notably, the total amount users spent in the Disney+ app declined after the first month, from $53.3 million to $43.9 million. That's interesting because subscription video services generally see increasing month-over-month revenue growth. The decline in revenue may indicate low subscriber retention.

It's worth noting, to demonstrate how big of a success Disney+ has been, that Disney+'s revenue through its first two months was four times as much as HBO Now's in its first two months. That's despite the latter charging a subscription price twice as much as Disney+.

Things - Disney+ - Decline - Revenue

There are a few things that may be going on with Disney+'s decline in in-app revenue.

Disney offers discounted annual subscriptions for Disney+, and consumers that signed up on day one were probably more likely to take the offer than those who signed up later. That's because those users were signing up for a known product -- the...
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