Status: 08/13/2021 12:42 p.m.
The increasing focus on the streaming business is paying off for Disney: In the past quarter, the group attracted significantly more new subscribers than competitor Netflix.
In the highly competitive streaming market, the US entertainment company Walt Disney is increasingly competing with the market leader Netflix. In the second quarter, the streaming service Disney + recorded an increase of twelve million customers. This increased the number of subscribers to 116 million. That is twice as many as a year ago.
The two services Hulu and ESPN +, which are also owned by Disney, also gained more paying customers. Together with Disney +, Disney’s subscription offers now have almost 174 million users.
Netflix’s lead is getting smaller
For comparison: Market leader Netflix only attracted 1.5 million new streaming customers in the same period and now has 209 million subscribers. The streaming giant seems to have reached its zenith, especially in North America. He lost almost half a million customers there.
As a result, the Disney group is increasingly developing into Netflix’s toughest rival. “It is obvious that Disney + has now become an indispensable streaming service alongside Netflix,” says analyst Paolo Pescatore from market watcher PP Foresight.
Disney has the edge in the price competition. According to media reports, the Group’s streaming service is cheaper than Netflix’s.
Alternatives to cinema closings
Disney was able to score points in the Corona crisis with streamed films that were actually shot for the cinema. “In the light of the longer and unpredictable pandemic, we had to find alternatives to bring our films to customers while the cinemas were closed,” said Disney boss Bob Chapek in the conference call following the figures presented.
In the meantime, cinemas have reopened in many countries around the world. Disney is now pursuing a dual strategy. The superhero film “Black Widow” was also offered on the streaming platform parallel to the cinema release. Hollywood star Scarlett Johansson has sued Disney for missing out on millions of dollars. Disney had contractually guaranteed her a share of the box office revenue.
With investments on the way to number one
With investments of billions, Disney wants to become the market leader in the streaming business over the next few years. The group is providing around 16 billion dollars for new content by the end of 2024 and wants to increase the number of subscribers to 260 million. Experts expect Disney + to overtake Netflix by 2026.
In addition to Disney, a number of other media and entertainment groups cavort in the streaming business. Amazon and Apple are involved in this billion-dollar market. AT&T recently sold its WarnerMedia media business with channels such as CNN and HBO (“Game of Thrones”) to the Discovery media group. This creates a new media giant and Netflix competitor. So far, the streaming service HBO Max has a good 64 million subscribers.
Netflix boss does not see any major headwind
Netflix boss Reed Hastings sees the increasing streaming competition calmly. “We don’t see any major headwinds from new streaming competitors,” he said at the end of July when the disappointing quarterly figures were presented. In contrast to Netflix, Disney is not yet making any money with the streaming business that started in 2019. Disney + is not expected to generate profits until 2023.