Across its streaming platforms, Disney now has 221 million subscribers, maintaining its growth as Netflix and other competitors struggle to retain customers and manage costs.
According to chief executive Bob Chapek, Disney Plus had an ‘excellent’ quarter between April and early July, as it gained 14.4 million subscribers. To capitalize on this expansion, Disney Plus’ monthly subscription fees will increase from $7.99 to $10.99 in the United States starting December. An ad-supported tier will also be available for $7.99.
According to chief financial officer Christine McCarthy, ad-supported content will be highly sought after on the new platform. In addition to providing ‘greater consumer choice at a variety of price points to meet the diverse needs of our viewers,’ senior Disney executive Kareem Daniel said the two-tier pricing structure will enable us to reach an even broader audience.
Chapek said Disney Plus experienced significant expansion in the East, noting that the platform seeks to highlight global celebrities such as South Korean megagroup BTS.
Executives reduced their estimates for Disney Plus despite Disney’s good performance. The service will still be profitable by 2024, according to the business, even if it now anticipates up to 245 million members by that year, down from the previously anticipated 260 million. A major setback for the firm is losing the ability to stream Indian Premier League cricket games, a well-liked sports league in a nation that fuels much of Disney Plus’s global expansion.
In a competitive market, other big streaming services have had trouble keeping consumers. This year, Netflix has been losing members like crazy, losing 200,000 in the first quarter and another 970,000 over the next three months. There are currently 220.7 million subscribers. At least 450 U.S.-based employees of the streaming giant have been let go this year in order to save expenses; among those who lost their jobs were workers at Tudum, a website that Netflix founded less than a year ago in order to display behind-the-scenes material for popular shows.
One of the more expensive general entertainment streaming services, a normal Netflix subscription in the US runs a little over $15 per month. Analysts blame the popularity of password sharing, its exit from the Russian market after the invasion of Ukraine, and consumer concerns about the economy for the fall in Netflix members. Business News.
During after-hours trading in New York, Disney shares increased 6.85 percent to $120.13