Two rooms, two atmospheres. Entertainment giant Disney has recorded another jump in subscribers to its Disney+ streaming platform, flagship of its new strategy, putting even more pressure on Netflix, whose growth is stalling. Disney+ reached 137.7 million subscribers, up 33% year-on-year. Between late December and early April, the Burbank (California) group gained 7.9 million net subscribers to its subscription video service. The figure contrasts with that of its big competitor Netflix, which lost 200,000 accounts over the same period, when the platform had not seen a decline for more than ten years.
Disney expects Disney+ subscribers to increase in the April-September period compared to the first quarter of its staggered fiscal year, which was October-March, Chief Financial Officer Christine McCarthy said. For its part, Netflix expects to lose two million subscribers in the current quarter compared to the previous one.
About to dethrone Netflix?
Adding ESPN+, a sports streaming platform, and Hulu, which is more adult-oriented than Disney+, the Disney group had more than 205 million subscriptions at the start of April, although some users subscribe to a plan that offers all three. services at an advantageous total price (20 dollars per month against 28, in the United States). Chief Executive Bob Chapek said Disney is still aiming for a range of 230-260 million Disney+ subscribers by fiscal year 2024 (completed at the end of September 2024), which could put it ahead of Netflix, which currently has 221 million accounts. He also expects to see streaming become profitable by then.
To accelerate its growth, the platform is counting on the launch of an offer with advertising by the end of the year in the United States, and in 2023 internationally. Bob Chapek also indicated that Disney is already considering offering a streaming version of ESPN that contains all of the sports television network’s programs, and not just a limited selection as is the case with ESPN +.
However, he clarified that the transition would not take place in the short term, because Disney still derives significant revenue from subscriptions to ESPN via traditional cable and satellite television in the United States.