From “A Worrisome Circumstance” (May 2023): “As I think about the ‘logical progression’ for Disney DTC, a single platform strikes me as a superior strategy for driving discovery and engagement… The way to incentivize subscription and usage of a bundle / consolidated app that has high-value content for everybody in the family is pricing; super fans with a narrow interest in sports, Marvel or Star Wars, etc., should be paying a significant premium for the a la carte offering - in my mind,
Good question. The answer is no; at this point, none of the companies in the industry provide (quantified and consistent) clarity on DTC churn. That said, there's decent third-party data available that provides some insight into that question (and likely aligns with your assumptions about the different standalone services, bundles, etc.). To your point, it will be a very important metric to watch in the coming quarters; the best we have, for now, is the net figures.
Thanks as always here, Alex. I'm curious if, historically, management has been transparent about churn rates?
Hopefully so, as that seems like a very important metric to watch in the coming quarter(s).
Nick,
Good question. The answer is no; at this point, none of the companies in the industry provide (quantified and consistent) clarity on DTC churn. That said, there's decent third-party data available that provides some insight into that question (and likely aligns with your assumptions about the different standalone services, bundles, etc.). To your point, it will be a very important metric to watch in the coming quarters; the best we have, for now, is the net figures.
- Alex
Got it. Thanks, mate!