and Canada, Disney+ picked up just 100,000 paid subs in the recent quarter, to reach 44.5 million.Ĭoncurrent with its earnings release, Disney announced a 38% price hike for the “premium” Disney+ no-ads version of the service, which will go up to $10.99/month on Dec. streaming subscriber growth has slowed for not just Disney+ but nearly every player in the biz. Now Disney+ is trying to raise its profitability profile, as U.S. That’s compared with Netflix, which reported an ARPU of $15.95 per month in the U.S./Canada region for Q2, up 10% due to price increases. and Canada) was $6.27 per month, a 5% decline from the year earlier, likely the result of a skew toward the Disney Bundle and inclusion of Disney+ (and ESPN+) in Hulu’s live TV package. For the three months ended July 2, Disney+ domestic ARPU (U.S. That was nearly half Netflix’s standard plan at the time.īut that low entry point has meant Disney’s flagship streamer makes less money than Netflix, the historical category leader. When Disney+ first launched in November 2019, it rapidly amassed market share by pricing the streamer at the low, low price of $6.99/month. A much better apples-to-apples comparison would show Disney’s unduplicated streaming subscribers (i.e., households), but that’s a figure the company does not disclose. According to the way Disney tallies its streaming numbers, one household that takes the Disney Bundle - with Disney+, Hulu and ESPN+ - is counted as three separate subscriptions. Sign up for the Daily Brief, Silicon Republic’s digest of essential sci-tech news.Separately, Netflix takes issue with comparing Disney’s subscriptions to Netflix’s subscribers. “This is a questionable marketing choice during a time when consumers are feeling an extra financial pinch that might only get worse come 2023.”ġ0 things you need to know direct to your inbox every weekday. However, he warned that Disney’s decision to sharply increase subscription costs in December may halt its momentum. This tells us that consumers who are even more price conscious right now are having to make tough choices on where to invest their streaming budgets based on the value they’re getting in return.” “There’s no more denying that competitive choice is causing Netflix headwinds while Disney+ rides the tailwinds. Mike Proulx, VP and research director at market research company Forrester, said that Disney+ is currently “winning the streaming wars” against Netflix “due to a strong content slate based on its IP that has universal mass appeal”. Meanwhile, the ad-free service is set to become more expensive, pinching US subscriber pockets at $10.99 per month. Starting 8 December, Disney+ will be available in the US at a cost of $7.99 per month for the ad-supported plan – which is how much it charges now for a standard subscription. Last month, it reported a record loss of nearly 1m subscribers in the second quarter of the year and shared details of its planned subscription changes, including a lower-cost ad-supported tier planned for launch in early 2023.ĭisney is also planning to launch its own ad-supported service later this year. The growing popularity of Disney+ comes at a time when Netflix is struggling to hold on to paid subscribers. “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,” said Disney CEO Bob Chapek. However, an increase in content and production costs led to a widening in operating loss from $0.8bn to $1.1bn in the latest quarter. This narrowly beats out Netflix, which had just over 220m subscribers in its most recent quarter.ĭisney streaming service revenues for the quarter also jumped 19pc to $5.1bn. The subscriber boost has also meant that the total number of people now paying for Disney’s three direct-to-consumer streaming services now stands at 221m. This exceeds the expected 10m figure and brings its total subscriptions to more than 152m. In its most recent earnings report published yesterday (10 August), Disney said that its flagship streaming platform Disney+ added 14.4m new subscribers in the company’s third fiscal quarter. Disney streaming services Disney+, Hulu and ESPN+ have together surpassed Netflix in terms of total global subscribers. Disney+ is launching an ad-supported plan in December while its premium ad-free plan gets a steep price hike.
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