TechDigits

Tech news
Friday, Mar 31, 2023

Disney overtakes Netflix in battle for subscribers

Disney overtakes Netflix in battle for subscribers

Disney will launch a new ad-supported streaming service in the US in December, as it overtakes Netflix in the race for paid subscribers.
The firm reported 221.1 million subscribers across its three streaming platforms at the start of July.

That put it just ahead of Netflix, which has been losing customers.

But Disney warned that its loss of streaming rights for cricket in India would reduce its subscriber growth compared to previous forecasts.

The firm, which also owns adult television streaming platform Hulu and the sports-focused ESPN+, said demand for its Disney+ product remained strong.

Pandemic lockdowns provided a boost to streaming services like Disney, but the easing of Covid restrictions doesn't seem to be preventing it attracting new customers.

The company added 14.4 million Disney+ subscribers in the quarter, many of them outside of the US - far more than analysts had expected.

Later this year it will launch a new ad-funded service, which will still be charged at the current subscription rate of $7.99. The charge for the ad-free service will rise to $10.99 per month.

The firm plans to launch its ad-funded service outside the US next year.

Executives said they do not expect the rise in prices to put off customers over the long term. The firm is also seeing strong interest from companies hoping to advertise on the new service, they said.

"We are in a position of strength with record upfront advertising commitment," chief executive Bob Chapek told analysts in a conference call to discuss the firm's financial results.

Disney's subscriber gains have come at a hefty cost, with its streaming business losing $1.1bn in the quarter.

Executives said they expect losses to peak this year, In the meantime, a strong rebound in attendance at its theme parks since the worst of the pandemic has provided the firm with a large financial cushion.

Total revenues in the April-June period jumped 26% from last year, pushing profits to $1.5bn.

Shares in the company jumped more than 6% in after-hours trade after the firm shared its results.

Paolo Pescatore, analyst at PP Foresight, called it a "pivotal moment in the streaming wars" saying Disney had more room to grow than arch-rival Netflix.

Netflix lost nearly one million accounts in the most recent quarter, putting its subscriber total at 220.67 million.

The results "firmly underline my belief that Disney is at a different phase of growth to Netflix", said Mr Pescatore. "There are still millions of users to acquire as it continues to expand into new markets and rolls out new blockbuster shows".
Newsletter

Related Articles

TechDigits
Close
0:00
0:00
China and Brazil have signed a new deal that will allow them to trade in their own currencies, bypassing the US dollar as an intermediary
Elon Musk and Others Call for Pause on A.I., Citing ‘Profound Risks to Society’
U.S. charges FTX's Bankman-Fried with paying $40 million bribe
Fallen 'Crypto King' Who Owes Millions to Investors Was Kidnapped and Tortured
Regulators blame social media for SVB's rapid collapse: 'Complete game changer'
AOC explains why she opposes banning TikTok
Gordon Moore, a co-founder of Intel Corporation, died at 94
Donald Trump arrested – Twitter goes wild with doctored pictures
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Russian Hackers Preparing New Cyber Assault Against Ukraine
A brief banking situation report
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Banking regulators close SVB, the largest bank failure since the financial crisis
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
Being a Tiktoker might be expensive…
China's top tech firms, including Alibaba, Tencent, Baidu, NetEase, and JD.com, are developing their own versions of Open AI's AI-powered chatbot, ChatGPT
This shocking picture, showing how terrible is the results of the earthquake in Turkey
The desk of King Carlos Alberto of Sardinia has many secret compartments
Charlie Munger, calls for a ban on cryptocurrencies in the US, following China's lead
First generation unopened iPhone set to fetch more than $50,000 at auction.
Almost 30% of professionals say they've tried ChatGPT at work
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
What is ChatGPT?
Tesla reported record profits and record revenues for 2022
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Tesla slashes prices globally by as much as 20 percent
After Failing To Pay Office Rent, Twitter May Sell User Names
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges
Corruption works: House Financial Services Chair Waters doesn't plan to subpoena her donor, Sam Bankman-Fried, to testify at hearing on FTX collapse
Yellen hints at ‘national security’ probe into Twitter purchase
Elon Musk reinstates Donald Trump's Twitter account.
George W. Bush and Barack Obama will hold back-to-back disinformation conferences
Solar + Powerwall ensures you never lose power, even if the grid goes down
This man paid for strangers' grocery and it moved them to tears
Meta introduces a new version of Mark Zuckerberg
Virtual Reality on billboards: BMW advertisement on Times Square
Apple CEO Tim Cook says coding should be taught as early as elementary school: 'It's the most important language you can learn'
Apple Executive Resigns After Viral TikTok Shows Him Making Crude Jokes
Huawei is not only better technology, but also protecting users better: Apple Warns Of Security Flaw For Iphones, Ipads And Macs
Mark Zuckerberg warns many teams will ‘shrink’ as Meta revenue drops
Elon Musk reportedly begged for forgiveness after his affair with Google co-founder Sergey Brin's wife
×