Wonder Woman 1984 and Hamilton were two of the biggest films of 2020 – at least when it comes to streaming. Recent data from third parties suggest that both launches have taken crowds of subscribers to their streaming platforms (HBO Max and Disney Plus, respectively). More than any other film that premiered online this year, Wonder Woman 1984 and Hamilton generated the largest number of initial registrations, according to new data from research firm Antenna. Data from research firm Screen Engine found similar results.
But researching the data shows that the success of both releases is more complicated than it looks. Unlike a conventional box office release, streaming success is measured not just by how many people have seen the movie, but by how many people have stayed there afterwards. Measuring that success is much more difficult, but with this lesson, three new rules of the streaming game are already becoming clear.
Successful launches generate immediate subscriptions
This is somewhat obvious, but it is good to see it spelled out in the data. Wonder Woman 1984 led the group with the largest number of subscriptions in the weekend of a film’s debut on streaming services, with Hamilton generating 71 percent more and Soul 35 percent more. Although, Wonder Woman 1984 was HBO Max’s first major release, while Soul debuted later The Mandaloriansecond season of. (The overall number of registrations over the weekend may be less because people already had Disney Plus.)
Determining the value of “higher” on streaming platforms is complicated. Neither WarnerMedia (the parent company of HBO Max) nor Disney share data on the performances of their films. While these numbers allow reporters and analysts to see the total number of subscribers and determine how much a single film generates in subscription revenue, they are not the most important numbers. (It is also difficult to translate streaming success into box office performance, as there are many variables, but Wonder Woman 1984domestic box-office revenue in the weeks following the film’s initial release is far from phenomenal.)
Highly successful launches do not always lead to long-term subscriptions
Getting people to sign up is one thing; maintaining them is another. Without a doubt, keeping them is also the most important part. Think of the United States. After most families have signed up for a service, it is much more difficult to continue growing in scale in that region. What becomes more important than growing up in that territory is convincing people to stay. Recurring revenue only makes sense if companies can convince most of their customers to pay continuously month after month, year after year.
although Hamilton attracted the largest number of subscribers by single title on Disney Plus in 2020, the dropout rate was higher than the average number of Disney Plus subscribers who subscribed to the service before the film was released. Almost a quarter of people who signed up for Disney Plus during HamiltonThe opening weekend was canceled within 30 days, according to Antenna. After three months, less than 60% of the same group of subscribers remained. By comparison, about 70 percent of people who signed up for Disney Plus in June (about four weeks before Hamiltondebut) kept the signature three months later. This does not mean that Disney Plus is in trouble – the platform had almost 90 million subscribers in mid-December – but it does talk about the need for consistency.
The beauty of streaming is also a problem to be solved: it is extremely easy for people to sign up and it is even easier for people to cancel. Although big titles bring subscribers, it doesn’t necessarily mean that people will continue to subscribe. Take along Hamilton: if people are signing up specifically for the filmed version of Lin-Manuel Miranda’s Broadway musical, they may not be as interested in staying for Star Wars or Marvel movies and TV shows.
This group of subscribers is important to Disney, as it represents an audience that Disney has not yet reached – but it is a double-edged sword, as they are more likely to cancel. People signing up before Hamilton, however, can watch Hamilton when it reaches the top of other Disney properties, they initially signed up to watch, but that’s not why they signed up. Finding out how to keep both groups happy is essential.
Retention depends on what else is in your catalog
Wonder Woman 1984 it is a more interesting case. It’s too early to tell if people are promptly canceling their HBO Max subscriptions after watching Wonder Woman 1984, but the type of plan customers are purchasing provides some insights. While more than 80 percent of people who signed up for Disney Plus watch Hamilton chose the monthly subscription offer instead of annual plans (compared to 69 percent of the average Disney Plus subscribers who signed up in June), roughly the same number of customers signed up for HBO Max’s monthly subscription as the plan six months, according to Antena.
There are a few reasons why this may be the case – including that WarnerMedia offered a cheaper price option for the six-month period before the Wonder Woman 1984the launch – but it also talks about WarnerMedia’s broader plan. A bit before Wonder Woman 1984 When it came out, WarnerMedia announced that all Warner Bros. films. in 2021 they will be released on HBO Max in the same premiere of the titles in theaters. Every month, there will be a “theatrical release” available at home for HBO Max subscribers. This is in addition to new HBO programs, a library of popular and original HBO Max films and TV series.
WarnerMedia provided a good reason to keep the signature. The same is true for customers who signed up for Disney Plus to Soullaunch of. Instead Hamilton, customers who signed up for Disney Plus during SoulThe opening weekend of bought annual plans at the same level as those that bought monthly plans. This is just after the day of the investor focused on streaming from Disney, where executives hailed a series of titles that would reach Disney Plus in 2021. Like WarnerMedia’s announcement on HBO Max, Disney gave people a reason to keep their subscriptions and return to the platform.
The success of streaming is an act of balancing acquisition and retention. Subscription streaming is a valuable game for media and entertainment conglomerates due to its recurring revenue. This will only happen if customers are routinely satisfied with a mix of new titles and an impressive library. See: Netflix. Netflix has the lowest churn rate (a term used to describe cancellation rates) of any subscriber. There are enough new titles and a concrete enough library to justify the increasingly expensive subscription costs.
2021 is an important year for streamers like HBO Max and Disney Plus. Each company has its own strategy, but the biggest conclusion to 2020 streaming bets is something they both share: people want new things all the time. And with more places to have fun than ever before, every company needs to fight to keep its attention.