The Walt Disney Company said on October 1 that its three primary streaming services, Disney+, ESPN+, and Hulu, have surpassed Netflix’s 220 million customers.
Disney, which released its most recent quarterly results on Tuesday, stated that Disney+ gained 12.1 million subscribers in the most recent quarter, while ESPN+ gained 7 million subscribers and Hulu gained 3.4 new accounts.
Disney and Netflix are engaged in a fierce competition for viewers, with both companies developing lower-priced ad-supported tiers to attract budget-conscious consumers. While Netflix launched its ad-supported network this month, Disney+ will do so on December 8.
“Disney+’s ad-supported tier will be a game-changer for subscriber and revenue growth,” said Third Bridge analyst Jamie Lumley in an email. Its release cannot arrive soon enough.
Lumley noted that Disney has expanded its consumer base through “family-friendly features and properties.” “From a content standpoint, the most important concern is whether Disney+ will expand to include more adult-oriented entertainment and how it will do so without damaging its conventional brand.”
The increase in revenue to $20.15 billion from $18.53 billion fell short of the $21.27 billion forecast by experts.
In after-hours trading, shares of Burbank, California-based Disney slid $6.15, or 6.2%, to $93.75.
Bob Chapek, the chief executive officer of Disney, stated that the firm still expects the loss-making Disney+ service to become profitable in 2024 “provided we do not observe a significant change in the economic climate.”
—Based on Associated Press reporting.