Here's why Disney is launching a new streaming perks program
In recent months, the Mouse House has bolstered its streaming business by integrating content from Hulu and ESPN, as well as by forming a bundle with Max, Warner Bros. Discovery's rival streamer.
Now, its latest move to keep subscribers around is the introduction of a new program called Disney+ Perks. This program gives Disney+ subscribers deals on websites, free trials to memberships, and sweepstakes to win tickets for Disney Cruises or tickets to Disney movie premieres.
Disney first began testing limited-edition perks for its streaming customers in December 2023 and launched its permanent program this week. The company is also launching Hulu Perks in early June, though that program is currently only slated for the summer.
A Disney employee who worked on the Disney+ Perks program said the objective is to keep streaming subscribers engaged, happy, and paying.
This employee said preventing cancellations is a top priority.
"Churn is just top of mind — especially in the streaming industry," they said.
Disney's churn rate fell to 3% in April, according to the subscription data firm Antenna. That was its lowest level since last June and only slightly above industry leader Netflix's 2% rate. At the higher end of the scale are niche services like Apple TV+ and Starz at 7% and 8%, respectively.
A Disney spokesperson referred Business Insider to a video announcing the perks program when asked for comment.
Disney hopes perks set its streamers apart
In a streaming industry full of copycats, Disney's perks program is unique.
Other video subscription services have sweetened their offerings by tying themselves to bundles. But the closest analog to Disney+ Perks or Hulu Perks is the long-standing T-Mobile Tuesdays program.
Disney has spent the past year and a half testing the "take rates" of various perks to see what resonates with consumers, the employee who worked on Disney+ Perks said.
This person said sweepstakes were especially popular, and discounts to websites like Adidas and Funko were popular enough to stick, as was DoorDash's DashPass delivery service. They said perks would change with feedback, potentially as often as every week or two.
"It's a great way to engage the subscribers and give them benefits that are unique to Disney," the employee said.
There are some notable omissions from Disney+ Perks. There aren't discounts to the Disney Store or in-park discounts. The employee who worked on the program said they wanted perks to appeal to the widest possible audience.
"You also balance that for someone who doesn't have the ability to maybe be that close to a Disney park," the employee said.
In the coming months, customers may be able to access Disney+ Perks through the Disney+ app instead of having to go through a separate website.
If this perks program is successful, competing streamers like Netflix could take note.
"I would expect other streamers to do it over time," the Disney employee said.
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