According to a recent survey, Disney is predicted to overtake Netflix as the streaming industry’s leading platform by 2024 at the latest. At the beginning of July, Disney reported 221.1 million users across its three streaming channels, narrowly edging out Netflix, which has been losing customers, in that position.
Disney lost cricket streaming rights in India which they believe will slow subscriber growth relative to earlier projections. The company, which also owns the sports-focused ESPN+ and the adult television streaming service Hulu, claimed that demand for its Disney+ offering was still high.
Disney and other streaming services benefited from pandemic lockdowns, but it doesn’t appear like Covid is making them lose consumers as a result of the relaxation of its limitations.
What’s going on
- More than experts had predicted, the firm added 14.4 million Disney+ customers in the quarter, many of whom were located outside of the US.
- It will introduce a new advertising-supported service later this year, which will continue to be priced at the $7.99 monthly subscription level. The monthly fee for the ad-free subscription will increase to $10.99.
- Next year, the company intends to introduce its ad-supported service outside of the US as they try to maintain its lead over NetFlix. The US version will In order to surpass Netflix in the battle for paying users, Disney will introduce a new ad-supported streaming service in the US in December.
- In the most recent quarter, Netflix lost roughly one million accounts, bringing its total number of subscribers to 220.67 million.
Executives stated that they do not anticipate long-term client repulsion as a result of the price increase. According to the company, there is also a lot of interest from businesses looking to advertise on the new service.
In a conference call to announce the company’s financial achievements, chief executive Bob Chapek said, “We are in a position of strength with record upfront advertising commitment.
Disney’s increases in subscribers have come at a high price; its streaming division lost $1.1 billion in the quarter. The firm has a sizable financial buffer because of a solid increase in theme park attendance since the worst of the pandemic, according to executives, who expect losses to peak this year.
Profits increased to $1.5 billion during the April–June quarter due to a 26 percent increase in total revenues. After the company released its results, shares in the company increased by more than 6% in after-hours trading. It was a “pivotal moment in the streaming battles,” according to PP Foresight analyst Paolo Pescatore, who said that Disney had more space for expansion than Netflix, its main rival.
According to Mr. Pescatore, “[The results] firmly reinforce my conviction that Disney is at a different phase of growth than Netflix.” “As it continues to enter new markets and put out new hit series, there are still millions of users to be acquired.”
Netflix took a decade to reach the 100 million subscriber point while Disney took 16 months to achieve that feat.