Disney + now has 164.2 million subscribers, an increase of 12 million compared to the end of June, a sign that the platform launched three years ago continues to grow rapidly despite the economic crisis. This increase was stronger than expected by the market, but the Californian group’s streaming services (Disney+, ESPN+ and Hulu) more than doubled their year-over-year operating losses to $1.47 billion for the July-September period.
In all, Disney disappointed with revenue of $20.1 billion and profit of $162 million, year over year, but below expectations. The market expected a turnover of 21,270 million dollars and a net profit of 797 million. The Enchanted Kingdom stock lost around 6% during electronic trading after the close of trading on Tuesday.
“By realigning our costs and generating profits through rising prices (from subscriptions, editor’s note) and with our ad-supported formula for Disney+, we believe we are on the path to making streaming profitable,” said Bob Chapek. , the head of the company, quoted in the press release. He confirmed Tuesday that Disney+ should hit profitability in 2024.
Its “amusement parks, experiences and spin-offs” arm generated $7.4 billion in revenue, up 36% year-over-year, in the fourth quarter of its staggered fiscal year. A “record” result indicated Bob Chapek during the analyst conference. The entertainment giant is benefiting from the end of the pandemic and consumer appetite for travel and outings after a long period of health restrictions linked to Covid-19.
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Netflix and Disney+ are about to launch a cheaper but ad-supported subscription offer, to attract even more viewers but also to diversify their revenue streams. Netflix has removed the table from its competitor by advancing the activation of its new formula to November.
The veteran and industry leader had a rough first half, losing nearly 1.2 million subscribers, but bounced back this summer, adding about 2.4 million more subscribers. His cheapest plan is now $6.99 a month in the US, down from $9.99 ad-free.
Disney+ will launch its own ad-supported plan on December 8 for $7.99 per month, while its base ad-free subscription drops to $10.99. Launched at the end of 2019 as a cannonball in the streaming landscape, Disney+ should exceed 108 million US viewers by the end of the year, according to figures from Insider Intelligence. The platform will thus capture more than 45% of US users of streaming services, behind YouTube, Netflix, Amazon and Hulu (which belongs to Disney).
Source: BFM TV
