New Data Shows the True Nature of the Fight Between Netflix, Disney+, Other SVODs
One would think a streaming service like Netflix (NASDAQ: NFLX) or Disney+ from Walt Disney (NYSE: DIS) needs a combination of quality and quantity to attract new subscribers. That is to say, not only do viewers want entertainment that keeps their attention, they want lots of it. After all, these streaming-video-on-demand (SVOD) outfits are competing with cable TV, which offers a small universe of channel choices.
As it turns out, however, this really isn't the case. A wide swath of TV fans sign up for a particular service to watch one specific show, and they didn't learn about it via an advertisement. Rather, friends and family probably recommended it. Once they're hooked on one particular program, though, they're far more likely to stick with that streaming service.
The implications of this nuanced consumer behavior are enormous for the on-demand video industry.
Source Fool.com
