MSW’s RDE Analytic Framework rests on a study that found that three equity dimensions (Relevance, Differentiation, Emotion) are responsible for driving a significant portion of brand growth.  Our ongoing Chart of the Week series is dedicated to sharing RDE results for a variety of categories.

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TBSM / RDE Assessment of 10 streaming video service brands collected in December 2019 among about 400 male and female steaming video service users led to the following insights:

• In its second month in existence, Disney+ finds itself already competing with the big streaming players in terms of preference and RDE composite.  This is not surprising given that it achieved 10 million sign-ups on day one and is estimated to reach 25 million by the end of the first quarter of 2020.

• Netflix holds a strong lead in both preference and RDE – leading other brands in all three dimensions.  This is not surprising giving its industry leading 60.6 million US subscribers (note Amazon doesn’t report number of Prime Video users and the 100 million Prime subscribers get a bundle of benefits including free one-day shipping).

• However, comparing to August 2019 tracking results, Netflix appears to be hit hard by the Disney+ in terms of preference.  Netflix preference dropped over 10 percentage points in December vs August, nearly the same as the total Disney preference level in December of 11.7%.  Netflix RDE also appears to be affected most by the Disney entry, particularly relevance.

• Disney+ lags somewhat in relevance, as this dimension is typically most strongly tied to current sales level.  However, expect Disney+ relevance to rapidly increase as subscribers continue to be added and for its overall RDE to move past Hulu’s.  With Disney+ already leading Hulu in Differentiation and Emotional connection, expect also Disney+ subscribers to quickly surpass Hulu’s 28.5 million in the U.S.

• Preference for Disney+ skews more strongly among younger and middle age women and somewhat toward more lighter users of streaming video services.  Hulu also skews towards younger women but skews much more toward heavy users.  On the other hand, Netflix preference is strongest among older women and medium users.

• Then which services have preference skewed more towards males?  Primarily the YouTube properties as well as some of the smaller sports-oriented services.