Wonder Woman 1984 and Hamilton were two of 2020’s biggest films – at least in terms of streaming. Recent third-party data suggests that both versions have driven crowds of subscribers to their streaming platforms (HBO Max and Disney Plus, respectively). More than any other movie that went online this year, Wonder Woman 1984 and Hamilton according to new data from research firm Antenna made the first reports. Data from research firm Screen Engine found similar results.
But looking at the data shows that the successes of both versions are more complicated than it seems. Unlike a regular box office release, streaming success is not only measured in how many people saw the film, but also in how many people stuck after it. To measure that success is much more difficult, but with this lesson, three new rules of the streaming game are already becoming clear.
Blockbuster releases immediate reports to management
The one is obvious, but it’s nice to see it spelled out in the data. Wonder Woman 1984 led the package for most sign-ups during the opening weekend of a movie on streaming services, with Hamilton 71 percent generate as much and Soul 35 percent as much. Although, Wonder Woman 1984 was HBO Max’s first major release, while Soul premiere on The Mandalorian‘s second season. (The overall sign-up numbers for the weekend may be lower because people already had Disney Plus.)
Determining the value of ‘largest’ on streaming platforms is complicated. Neither WarnerMedia (HBO Max’s parent company) nor Disney share data for the performance of their films. While these numbers enable reporters and analysts to see the total number of subscribers and determine how much a single film earns subscribers, these are not the most important figures. (It is also difficult to translate flow success into box office performance as there are too many variables, but Wonder Woman 1984The domestic cash income in the weeks following the first release is not yet phenomenal.)
Blockbuster releases do not always lead to long-term subscriptions
Signing people up to sign up is one thing; to keep it is another. This is probably the most important part of keeping it. Think of the United States. After the majority of households have applied for a service, it is much more difficult to keep growing in the region. What becomes more important than growing in that area is convincing people to stay. Recurring revenue only makes sense if companies can convince the majority of their customers to pay month after month, year after year, continuously.
Although Hamilton in 2020, the highest number of subscribers per single title on Disney Plus, the delivery rate was higher than the average Disney Plus subscribers who signed up for the service before the film appeared. Nearly a quarter of people who registered during Disney HamiltonAccording to Antenna, the opening weekend will be canceled within 30 days. After three months, less than 60 percent of the same subscriber group remained. By comparison, about 70 percent of the people who signed up for Disney Plus in June (about four weeks before Hamiltonpremiere) signed up three months later. That does not imply that Disney Plus is in trouble – the platform had nearly 90 million subscribers in mid-December – but it does speak to the need for consistency.
Streaming’s beauty is also a problem to solve: it’s very easy for people to sign up, and it’s even easier for people to cancel. While big titles bring in subscribers, that does not necessarily mean that people will remain subscribers. Take Hamilton: if people subscribe specifically to the filmed version of Lin-Manuel Miranda’s Broadway musical, they may not be so interested in staying for Star Wars or Marvel movies and TV shows.
This group of subscribers is important to Disney because they represent an audience that Disney has not yet tackled – but it’s a double-edged sword, as it’s more likely to cancel. People sign for Hamiltoncan watch though Hamilton when it landed on top of the other Disney properties, they initially signed up to watch, but that’s not why they signed up. It is essential to find out how to keep both groups happy.
Retention depends on what else is in your catalog
Wonder Woman 1984 is a more interesting matter. It’s too early to tell if people are willing to cancel their HBO Max subscriptions after watching Wonder Woman 1984, but the type of plan that customers buy does provide insight. While more than 80 percent of the people who signed up for Disney Plus to 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), according to Antenna about the same number of customers who signed up for HBO Max’s monthly subscription as the six-month plan.
There are a few reasons why this may be the case – including that WarnerMedia offered a cheaper pricing option for the six months just before Wonder Woman 1984‘s release – but it also speaks to WarnerMedia’s broader plan. Just before Wonder Woman 1984 came out, WarnerMedia announced that every Warner Bros. movie in 2021 will be released on HBO Max on the same day. Every month there is a “theater release” available for HBO Max subscribers. It’s also a new HBO series, a library of popular movies and TV series, and HBO Max original articles.
WarnerMedia provided a good reason to keep the subscription. The same goes for customers who signed up for Disney Plus Soulsee release. Other than Hamiltoncustomers who signed up for Disney Plus Soul‘s opening weekend bought annual plans at the same level as those who bought monthly plans. This comes just after Disney’s massive streaming-focused investor day, where executives are hosting a number of titles that came to Disney Plus in 2021. Like WarnerMedia’s HBO Max announcement, Disney gave people the reason to hold on to their subscriptions and return to the platform.
Streaming success is a balance between acquisition and retention. Subscription streaming is a valuable play for media and entertainment conglomerates because of its recurring revenue. This only happens when customers are regularly satisfied with a mix of new titles and an impressive library. Watch: Netflix. Netflix has the lowest rate (a term used to describe the cancellation rates) of any subscriber. There are plenty of new titles and a concrete library to justify more and more expensive subscription costs.
2021 is an important year for streamers like HBO Max and Disney Plus. Every company has its own strategy, but the biggest takeaway from 2020’s streaming bets is something they both share: people want new things all the time. And with more places to get entertainment than ever before, every business has to fight to keep their attention.