Walt Disney Co surpassed Netflix Inc in total streaming consumers with 221 million and said that it will raise pricing for customers who wish to watch Disney+ or Hulu without advertisements.
In December, when it begins to offer a new option that includes commercials at the existing price, the media behemoth will boost the monthly cost of Disney+ without advertising by 38 per cent to $10.99.
On Wednesday, Disney shares surged 6.9 per cent in after-hours trade to $120.15.
In 2017, Disney placed its future on developing a streaming service to compete with Netflix, as viewers shifted away from traditional cable and broadcast television and toward internet viewing.
After five years, Disney has surpassed Netflix in total streaming customers.
As it debuted "Star Wars" series "Obi-Wan Kenobi" and Marvel's "Ms. Marvel," the Mouse House added 14.4 million Disney+ customers, exceeding the consensus of 10 million experts polled by FactSet.
Disney reported 221.1 million streaming customers at the end of the June quarter, when Hulu and ESPN+ were combined. Netflix has 220.7 million streaming members, according to the company.
"Disney is gaining market share when Netflix is struggling to add more subscribers," Investing.com analyst Haris Anwar said. "Disney has still more room to grow in international markets where it’s rolling out its service fast and adding new customers."
To assist entice new consumers, Disney will launch an ad-supported edition on December 8 for $7.99 per month, the same price as the ad-free version.
Hulu prices will increase by $1 to $2 per month in December, depending on the plan.
In this illustration, a smartphone screen with the "Disney+" emblem appears in front of the words "streaming service."
On Wednesday, the firm reduced its long-term subscription prediction for Disney+ consumers, blaming the loss of cricket rights in India.
Disney now anticipates 215 million to 245 million overall Disney+ subscribers by the end of September 2024. This is a decrease from the 230 million to 260 million that Disney had predicted.
Reduced expectations for India, where the firm is losing streaming rights for Indian Premier League cricket events, prompted the adjustment. Disney separated estimates for Disney+ Hotstar consumers in India from the rest of Disney+ for the first time.
According to Disney's Chief Financial Officer Christine McCarthy, the company expects to attract up to 80 million Disney+ Hotstar customers by September 2024, as well as between 135 million and 165 million others.
McCarthy stated that the business still expects its streaming TV unit to earn a profit in fiscal 2024. The division lost $1.1 billion in the most recent quarter.
Disney reported adjusted earnings per share of $1.09 for the fiscal third quarter ended July 2, up 36 per cent year on year, as tourists jammed its theme parks. Refinitiv surveyed analysts predicted earnings of 96 cents.
The parks, experiences, and goods division's operating income more than doubled to $3.6 billion.
Streaming losses weighed on the media and entertainment unit, which saw its profit fall 32 per cent to roughly $1.4 billion. Overall revenue increased 26 per cent year on year to $21.5 billion, exceeding the analyst forecast of $20.96 billion.
(Source:www.glitched.online)
In December, when it begins to offer a new option that includes commercials at the existing price, the media behemoth will boost the monthly cost of Disney+ without advertising by 38 per cent to $10.99.
On Wednesday, Disney shares surged 6.9 per cent in after-hours trade to $120.15.
In 2017, Disney placed its future on developing a streaming service to compete with Netflix, as viewers shifted away from traditional cable and broadcast television and toward internet viewing.
After five years, Disney has surpassed Netflix in total streaming customers.
As it debuted "Star Wars" series "Obi-Wan Kenobi" and Marvel's "Ms. Marvel," the Mouse House added 14.4 million Disney+ customers, exceeding the consensus of 10 million experts polled by FactSet.
Disney reported 221.1 million streaming customers at the end of the June quarter, when Hulu and ESPN+ were combined. Netflix has 220.7 million streaming members, according to the company.
"Disney is gaining market share when Netflix is struggling to add more subscribers," Investing.com analyst Haris Anwar said. "Disney has still more room to grow in international markets where it’s rolling out its service fast and adding new customers."
To assist entice new consumers, Disney will launch an ad-supported edition on December 8 for $7.99 per month, the same price as the ad-free version.
Hulu prices will increase by $1 to $2 per month in December, depending on the plan.
In this illustration, a smartphone screen with the "Disney+" emblem appears in front of the words "streaming service."
On Wednesday, the firm reduced its long-term subscription prediction for Disney+ consumers, blaming the loss of cricket rights in India.
Disney now anticipates 215 million to 245 million overall Disney+ subscribers by the end of September 2024. This is a decrease from the 230 million to 260 million that Disney had predicted.
Reduced expectations for India, where the firm is losing streaming rights for Indian Premier League cricket events, prompted the adjustment. Disney separated estimates for Disney+ Hotstar consumers in India from the rest of Disney+ for the first time.
According to Disney's Chief Financial Officer Christine McCarthy, the company expects to attract up to 80 million Disney+ Hotstar customers by September 2024, as well as between 135 million and 165 million others.
McCarthy stated that the business still expects its streaming TV unit to earn a profit in fiscal 2024. The division lost $1.1 billion in the most recent quarter.
Disney reported adjusted earnings per share of $1.09 for the fiscal third quarter ended July 2, up 36 per cent year on year, as tourists jammed its theme parks. Refinitiv surveyed analysts predicted earnings of 96 cents.
The parks, experiences, and goods division's operating income more than doubled to $3.6 billion.
Streaming losses weighed on the media and entertainment unit, which saw its profit fall 32 per cent to roughly $1.4 billion. Overall revenue increased 26 per cent year on year to $21.5 billion, exceeding the analyst forecast of $20.96 billion.
(Source:www.glitched.online)
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