The streaming court has a new queen. After years of unchallenged domination, Netflix has lost the scepter of platform with the most subscribers of the streaming market. To conquer the kingdom was Disney which, thanks to the increase of 14,4 million subscribers recorded in the third quarter of its fiscal year, reached 221 million total subscriptions among its various streaming offerings that include Disney+, Hulo, and ESPN+. Netflix, on the other hand, lost one million subscriptions in the same period, dropping to 220,7 million subscribers.
The subscriber battle between Disney and Netflix
Disney said subscriptions to Disney + they rose to 152,1 million during the quarter. Added to these are the 46,2 million subscribers of Hulu and to 22,8 million ESPN +, for a total number of subscribers that reaches 221,1 million.
Netflix, for its part, last July Netflix said it had recorded a drop in subscribers of 970 units in the second quarter. At the end of the period, Netflix had 220,67 million subscribers.
Back to Disney, looking forward, the company expects between 215 million and 245 million Disney+ customers in total by the end of September 2024, down from 230-260 million previously forecast, due to reduced expectations for India. , where the company is losing the streaming rights to Indian Premier League cricket matches.
Disney's record quarter
In the third fiscal quarter, i revenues increased 26% to $21,504 billion, driven by a 70% increase in revenues of the Parks, experiences and products division and the 11% increase to 14,110 billion in revenues from Disney Media & Distribution. Profits were $1,41 billion, or 77 cents a share, up from $918 million, 50 cents a share, a year earlier.
“We capped off an excellent quarter, in which our creative and business teams who delivered outstanding performances at our theme parks, we saw large increases in live sports viewing and significant growth in subscribers to 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,” he said. Bob Chapek, CEO of the Walt Disney Company.
More expensive subscriptions and debut of advertising in the US
Disney also announced that the cost of a Disney+ subscription will increase in the US by $3 a month at $10,99, while the subscription with the presence of commercials it will be $7,99. A subscription to Disney+ and Hulu, both with ads, will cost $9,99 a month.
“We expect the ad option to be very popular and some users would prefer to go ad-free,” said Christine McCarthy, the company's chief financial officer. For comparison, Netflix's cheapest streaming subscription in the US to date costs $15,50 a month, while its top-of-the-line plan is $20 a month.
Stock market reactions
Following the release of fiscal third quarter data, Disney stock soars on Nasdaq, half an hour after the opening of the American Stock Exchange, gaining more than 8% of its value at 121,82 dollars per share. Netflix shares also rose, marking +1,6% at 248,12 dollars.
