Disney has officially passed Netflix with highest number of subscribers
Disney’s total number of subscribers blew up to a whopping 221.1 million. Disney Plus now surpasses its biggest and long-time rival, Netflix. It’s clear proof that the streaming business is in no way undergoing saturation.
While it is a considerable breakthrough for Disney to acquire that massive number of subscribers, the company is also the first to have a more significant number of subscribers than Netflix.
The Walt Disney Company reported on Wednesday that Disney Plus subscribers increased to 152.1 million in the third quarter. According to Street Account, it was higher than the 147 million that analysts had predicted. Moreover, Disney stock also ends up soaring by more than 6% on that day.
Disney is the new market-leader.FEATURED STORIES
Disney (Disney+, Hulu & ESPN) – 221.1 Million paid subscribers.
Netflix – 220.7 Million paid subscribers. pic.twitter.com/VdfTFXXazn
— LetsOTT Global (@LetsOTT) August 11, 2022
After the end of the third quarter, ESPN+ had 22.8 million while Hulu had 46.2 million subscribers. In total, ESPN, Disney, and Hulu have 221 million subscribers.
Netflix’s record of total subscribers is 220.67 million. They reported losing about 1 million subscribers in the last three months. When Warner Bros. Discovery announced a change in content tactics, Netflix disclosed another significant drop in its users.
An established leader in the streaming industry, Netflix incurred an unexpected loss of 200,000 subscribers in the first quarter of 2022. But, the company is aware that potential more significant loss in the next quarter can sum up to 2 million. When they had lost a total; of 970,000 subscribers, Netflix even looked at it as positive. The release of the fourth season of Stranger Things saved a portion of the subscribers.
While Disney Plus, also showed a drop in their average earning per user by 5% in the quarter. Their report showed a significant decrease in the US and Canada as customers chose to get cheaper offerings from other streaming platforms.
— Watcher.Guru (@WatcherGuru) August 10, 2022
Furthermore, the fluctuation of the numbers leaves the investors and analysts thinking about what’s in store for the whole industry. There’s uncertainty with Netflix expecting can rebound and gain more subscribers. But the opposite happened.
While for Disney, aside from their new releases, they also revealed a new pricing strategy and advertisements, particularly on Disney Plus. On Dec.8, Disney Plus with ads will be $7.99 per month. This is the current price of Disney Plus without commercials. The cost of ad-free Disney Plus will increase to $10.99. It will be a $3 increase per month.
Disney also reduces their 2024 forecast to 215 million, coming from 245 million. In December 2020, Disney lowered its Disney Plus guidance from 230 million to 260 million at the end of fiscal 2024. Positively, the company’s outlook for Disney Plus is that it will become profitable by the end of 2024.
Media shares end up at a high on Wednesday. And Disney is also up at almost 5%. While Netflix is flat in after-market trading. In summary, Disney had unexpected earnings on both the top and bottom lines. The company’s increased spending at its theme parks is a significant factor in the status of its revenue.