Apple TV+ launched today, and Disney+ is launching on Nov 12. These two companies are reshaping the video streaming industry as we know it.
However, despite 60 years of content in Disney’s corner and six major brands (Disney, Pixar, Marvel, “Star Wars,” National Geographic and “The Simpsons”), Apple’s TV+ has the upper hand in the streaming wars, according to Zuora, a cloud-based subscription management software provider.
Apple TV+ might not have the strongest library of content, but they’re sitting on 450 million+ subscribers, the real metric that matters in the streaming wars, says Tien Tzuo is CEO and cofounder of Zuora (NYSE: ZUO) and the author of “SUBSCRIBED: Why the Subscription Model Will be Your Company’s Future – and What to Do About It.”
“How many times have you interacted with Apple today (via phone, computer, apps)? What about Disney?” he says. “Simply put, when it comes to establishing and developing direct customer relationships, Apple is miles ahead. Disney might seem like the odds-on favorite in the streaming wars, but Apple has an overwhelming advantage.”
Tzuo says that because the real aim of these video efforts is to establish and strengthen direct customer relationships. Apple is starting with a billion registered users. Disney is starting from zero. He also think that “subscription fatigue” is a myth.
“If a service offers legitimate ongoing value, people will subscribe to it,” Tzuo says. “If it doesn’t, they won’t. In a few years, you’re going to have ten times the number of subscriptions you have today. Everything is moving to VOD for a reason. People want choice. They are tired of paying for hundreds of TV channels that they don’t watch. They are also sick of advertising. And these media companies are trying to establish direct relationships with their customers. So it’s win-win-win.”
