The Walt Disney Company reported earnings for its fiscal second quarter ending April 2, 2022, announcing a 7.9 million increase in Disney+ subscribers, bringing total subscribers to 137.9 million.
It was ahead analyst forecasts 5.2 million new subscribers and follows a difficult quarter for its streaming rival Netflix, which recently reported a loss 200,000 subscribers and predicted a fall of 2 million in the second quarter.
Across all Disney streaming services (Disney+, Hulu, ESPN+), the total number of subscribers exceeded 205 million, with a net quarterly increase of 9.2 million thanks to the flagship streamer. Hulu gained 45.6 million subscribers this quarter (up 10% year-over-year) and ESPN+ added 1 million for a total of 22.3 million (up 62% year-over-year).
Bob Chapek, CEO of The Walt Disney Company, said in a statement that these positive results “proved once again that we are in a league of our own”. He repeated the earnings report says the company is still on track to reach 230 million to 260 million subscribers by fiscal year 2024.
Revenue for the quarter rose 23% to $19.25 billion, with earnings of 25 cents a share, beating Wall Street’s expectations. $18.91 billion. However, despite this, Mouse House took a $1.02 billion hit related to the termination of content licensing agreements, and shares fell. over 2% after hours trading on Wednesday.
Disney wrote in a report that it terminated the agreement “to enable the company to use the content primarily in our consumer-facing services.” While it was not clear what the program was, it is likely that it was a former deal with Netflix that included TV series Marvel Daredevil, Jessica Jones, Luke Cage, Iron Fist, The Defenders, The Punisher, and Agents of SHIELD
Known for its content for kids, some parents were upset that the streamer added more. show for adults after he introduced stricter parental controls. Chapek stated during the call that 50% of Disney+ subscribers are families without children. He continued by saying that the streaming service will continue to reach out to a wider audience and recognizes Disney+’s “unique ability to reach viewers from different demographics.”
In addition, there is a large amount of upcoming content such as “Obi-Wan Kenobicoming to the service in a few weeks, and Marvel’s Doctor Strange in the Multiverse of Madness, which is estimated to hit the platform in July. Subscribers also had a chance to watch new titles this quarter, such as Cheaper by the Dozen reboot, Moon Knight, and Blushing.
Another way to expand your audience is to add cheaper ad-supported tier. In doing so, Čapek added that the company could increase investment in content, and as a result, “we believe this will give us an opportunity to adjust our price.”
He goes on to say, “As we expand Disney+ across multiple price points and leverage some of our other services, we may see the additive nature of the ad-driven service allowing us to keep the price lower. due to the additional income that we will receive per user from advertising costs. So we believe we can move up and cascade our net price over time given the huge value we started with, the increased value for money and all the new content. But we are optimistic.” This may indicate that we will see price increases in the future.
In anticipation of the summer, Disney+ expands to 42 additional countries and 11 territories Europe, Western Asia and Africa. Rollout will begin next week, May 18, in South Africa.
“Looking forward into the second century of Disney, I am confident that we will continue to transform entertainment by combining extraordinary storytelling with innovative technology to create an even bigger, more connected and magical Disney Universe for families and fans around the world,” Chapek said. .
Credit: techcrunch.com /