• Vivo melding OTT service with three separate payment plans from mid‑November 2020.
  • OTT market spiking, with operator attempting to keep pace.

Telefónica|Vivo gearing up for Disney+ launch

Telefónica|Vivo gearing up for Disney+ launch

Source: Disney Media

Telefónica|Vivo flagged that it had become the “first operator” in Brazil to offer access to the Walt Disney Company (WDC)‑owned over‑the‑top (OTT) video streaming service Disney+, from 17 November 2020.

As reported by local news outlet Folha de S.Paulo, Vivo was one of four distributors of the Disney+ service in Brazil. The others were commercial banking services provider Brandesco, subscription video‑on‑demand (SVOD) service Globoplay, and online marketplace Mercado Libre.

As one of three Disney+ subscription package options (see below), Vivo confirmed that Disney+, which offers content from “Disney, Marvel, Pixar, Star Wars, [and] National Geographic”, began featuring on its 4K resolution IPTV service Vivo Fibra, adding to its multiscreen capabilities and plethora of other OTT services — including Netflix.

Vivo’s Disney+ subscription options

  • Disney+ app subscription: costs BRL 27.90 (€4.32) per month. First month’s subscription is free.
  • Vivo Fibra with Disney+: access via pay‑TV service costing BRL 154.99 per month.
  • Vivo Selfie with Disney+: subscription added to mobile plan with 50GB data for BRL 159.00 per month, with the first three months at the discounted rate of BRL 129.00.

Disney+ entered Brazil as part of a wider rollout across Latin America, starting in November 2020. The move was first mooted by WDC Chief Executive Bob Chapek on a Q3 2020 earnings conference call. While details on the means of distribution outside of Brazil are still sparse, Telefónica Peru’s Chief Information Officer Marco Vidal recently indicated that Disney+, as well as Amazon Prime, would be added to its SVOD service Movistar Play before the end of 2020 (Telefónicawatch, #147).

More the merrier

Netflix was integrated with Vivo Fibra, in partnership with Mediakind, in April 2019, pitched at the time by the Group as a means of substantially upgrading its service offering and drawing in new customers (Telefónicawatch, #134). The more mature Netflix holds 193 million subscribers worldwide, while Disney+ recently disclosed that its subscriber count was edging closer to 100 million (at 73 million). Disney+ launched in US markets during late‑2019, and in Europe from March 2020.

The OTT video market is said to be spiking, a trend accentuated by COVID‑19-inflicted population lockdowns, according to a 2020 study conducted by market research specialists Strategy Analytics. Indeed, Telefónica has since shown an increased willingness to enable new revenue streams by working with various third‑party OTT video services, with integration coming as part of various country‑level agreements. Its collaboration with international players, moreover, is most notable (and exclusive) in Spain, where Movistar became a Disney+strategic distributer” in March 2020 (Telefónicawatch, #141, #145, and #147). Meanwhile, in Chile, Movistar TV recently added Amazon Prime Video, Netflix, YouTube, and YouTube Kids to its offering (Telefónicawatch, #144).

 

[Further reference: SVOD forecast, by service: global (2010–2025) — Strategy Analytics, 25 March 2020; Q3 FY20 earnings conference call — Walt Disney Company, 4 August 2020; Third-quarter 2020 financial results — Netflix, 20 October 2020; Vivo is the first operator to bring Disney+ to its customers in Brazil — Telefónica|Vivo, November 2020; Disney + partners and expands presence in BrazilFolha de S.Paulo, 4 November 2020; The Walt Disney Company reports fourth quarter and full year earnings for fiscal 2020 — Walt Disney Company, 12 November 2020.]