It looks like the streaming market isn’t taking a nosedive after all. Netflix and HBO Max have been low expectations; especially the former continuing to lose subscriber count. The same fear existed with Disney+ but it seems that they managed to pull it to their advantage as they just reported that they’ve added 14.4M subscribers, which is ahead of their predicted 10M. As such, the stock is up 6% as a result and its revenue continues to be driven by its parks offerings.
Bob Chapek, the current CEO of Walt Disney, has shared the following statement on their third fiscal quarter:
We had an excellent quarter, with our world-class creative and business teams powering outstanding performance at our domestic theme parks, big increases in live-sports viewership, and significant subscriber growth at our streaming services. With 14.4 million Disney+ subscribers added in the fiscal third quarter, we now have 221 million total subscriptions across our streaming offerings. We continue to transform entertainment as we near our second century, with compelling new storytelling across our many platforms and unique immersive physical experiences that exceed guest expectations, all of which are reflected in our strong operating results this quarter.
Bob Chapek
Unlike most, Disney has a diversified portfolio that can counterbalance any scares with the booming streaming business. Plus, the confirmation that an ad-supported model of Disney+ will hit the US in December also adds to the excitement on what exactly the future may hold for investors. Of course, the price hike to $10.99 for an ad-free version might rub som the wrong way.
Chapek promised investors in late 2021 that they’d reach 230M+ subscribers by September of 2025. It’ll be interesting to see if that continues to rise or if we should expect a slow-down anytime soon. They also expect Hulu and ESPN+ to become profitable by then as well.
Source: Deadline
