Study: Turning content dollars into audience - Page 26


Further key differentiators that serve as a basis for unleashing the full potential of exclusive

content include the usability and interface of the platform. In this regard, the leading VOD providers

differ greatly from each other, with Netflix leading the field and being known for having a smoother

user interface than Amazon Prime, Disney+, and Sky.

In light of the current pandemic, the means for sustaining the competitive advantage of content

exclusivity become even more important as a key differentiator. While VOD providers initially

received a boost from customers in lockdown looking for entertainment (average subscriptions per

household in the US are up by 10%), the underlying competitive saturation has not changed and

once the lockdowns end, consumers will have less time for TV, leading to increased churn rates.

Moreover, subscriptions purchased during the pandemic have a higher chance of being

discontinued, with one out of five services at risk of being dropped compared to one out of ten

services when purchased before the pandemic.

Besides price (e.g., discounts, free access deals), the most important retention mechanism will be

exclusive content in terms of variety and depth of series and movies offered as well as early access

to new seasons of flagship shows.

3.4 Learning from the leaders – Netflix, Disney+, and

TV Now