Survey Finds that This Many Disney+ Users Plan to Axe Netflix

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A survey from Bank of America has shown that almost 7% of Disney+ users who have a Netflix subscription are planning to cancel it.

The survey, of over 1,000 Americans, has shown that 6.5% of its respondents are using both services and plan to
terminate their Netflix accounts.

Despite this, BoFa still recommends Netflix as a stock and recommends that investors buy it.

Analysts Nat Schindler and Justin Post have noted that they have doubts as to whether the survey’s respondents will actually cancel their Netflix accounts.

“We are skeptical that much of this churn is incremental or will be realized, with Bloomberg reporting Netflix had seen no increase in cancellations on 11/22, 10 days after the Disney+ launch,” the analysts wrote.

But “this level of churn, if realized, could be higher than expectations,” they also wrote.

If the respondents do actually cancel their Netflix plans, brokerages would have to readjusted their revenue forecasts.

“Our survey and company reports suggest healthy U.S. adoption of Disney+, but we are encouraged that most early Disney+ users do not see it as a substitute for Netflix,” Post and Schindler wrote. “While it is possible that there is some incremental churn from Disney+, it looks to be modest and we do not see any broad trend changes in our survey data compared to October.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.

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