With 221 million streaming subscribers, Disney+ has overtaken Netflix in the race for subscribers. According Reutersthe streaming giant announced yesterday that its total subscriptions reached 152.1 million at the end of the second quarter, surpassing the 147 million mark forecast by analysts.
The company also said it added 14.4 million Disney+ customers, surpassing the 10 million additions expected in July. Today, the company has a total of 221 million subscribers, combined with Hulu and ESPN+ (Hulu has 46.2 million subscribers and ESPN+ has 22.8 million).
With that, Disney overtook Netflix which has 220 million subscribers at last count. This shows how volatile the game is in the streaming market.
Consequently, the new streaming giant also announced a 38% increase in the monthly subscription price for Disney+ users, giving them access to the platform ad-free. Additionally, Hulu’s prices are expected to increase by $1-2 a month, depending on the plan, starting in December.
The streaming war
The streaming landscape exchange. Entrants like Disney+ and HBO Max are offering their own compelling services, the development could force the company to adopt some of the revenue streams that have made traditional media companies successful for decades: theatrical distribution, subscription services ad-supported and possibly consumer products.
It’s no surprise that media companies are now placing more emphasis on online streaming than cable properties; the future of the media seems to be quite obvious in this respect, as they have succeeded in attracting a wider audience over time and their number continues to grow.
In the world first video on demand service was launched by Hong Kong Telecom (HKT) in China, but the project failed partly due to major technical issues. netflix, on the other hand, was a huge success.
Starting as a small DVD rental companyNetflix has become one of the biggest television and film studios in the world, with more subscribers now.
As the online streaming platform grew in popularity, other companies started entering the streaming market. In 2017, Disney started building a streaming service to compete with Netflix as audiences shifted to online viewing from traditional cable and broadcast TV.
Therefore, Disney stopped streaming its movies on Netflix by launching its own streaming platform, Disney+. It reached ESPN+ and in 2019 Disney entered in an agreement with Comcast, the parent company of NBC Universal, to acquire a 33% stake in the Hulu platform.
Rival Amazon launched an internet video service (Amazon Unbox) in 2006, but added the benefit of “unlimited, ad-free instant streaming of over 5,000 movies and TV shows” to paying Prime members in February 2011.
Netflix’s loss, Disney’s gain
“Disney is gaining market share as Netflix struggles to add more subscribers. “Disney has even more room to grow in international markets where it is rolling out its service quickly and attracting new customers.”
– Haris Anwar, analyst at Investing.com
While others are balancing their subscriber growth, Netflix is struggling to retain subscribers. In May this year, Netflix laid off more than 150 employees as its revenue and subscriber numbers dwindled. It was a blow to the company’s culture and its status as a successful brand.
For the first time in a decade, it revealed a sharp drop in subscribers in the first quarter of 2022, with a net loss of 200,000 streaming customers. The company also forecast a drop of 2 million subscribers in the second quarter. With various strategies in place, the “king of streaming services” is looking to regain its leadership position and gain momentum.
On the other hand, Disney seems to be gaining market share, expanding internationally, acquiring new customers and deploying new services. In after-hours trading on Wednesday, Disney shares rose 6.9% to $120.15. According to Reuters, its overall revenue rose from a year earlier to $21.5 billion, beating analyst consensus of $20.96 billion.
Disney Chief Financial Officer Christine McCarthy expects the company to add up to 80 million Disney+ Hotstar customers by September 2024, along with between 135 and 165 million more. McCarthy said the company still expects its streaming TV unit to turn a profit in fiscal 2024.
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