NEW STREAMING SERVICE CONFIGURATION

OPPORTUNITY

As the global leader in real-life entertainment, Discovery plans to premiere its own direct-to-consumer streaming platform. Consumer research was conducted to guide strategic positioning of DCI’s OTT offering, including programming and pricing, in order to maximize demand while minimizing cannibalization from existing cable subscribers.

METHODOLOGY

DMG conducted an online study among n=1500 adults, mapping the competitive set by key metrics to quantify the whitespace for the Discovery OTT service.  DMG developed a Discrete Choice Model to guide optimal pricing for target consumer segments and programming options to minimize cannibalization of existing Discovery network subscriptions (i.e., cable, Satellite, etc.)

IMPACT

The study identified and prioritized four consumer segments to drive subscriptions. Two cost of service models were developed: lower ad-supported pricing to drive penetration and higher commercial-free pricing to drive revenue gains while minimizing cannibalization. Cannibalization rates (i.e., cancelling cable/satellite service) rates were determined across different service offerings.