Disney+ added 12 million subscribers last quarter, but still missed revenue expectations

Disney+ added 12 million subscribers last quarter, but still missed revenue expectations

In a nutshell: Disney continued to add subscribers to its three services during the latest quarter, with Disney+ beating expectations thanks to the 12 million new subscribers it attracted. Despite the impressive numbers, the company missed revenue expectations by nearly $1 billion, but the imminent arrival of the ad-supported tier and exclusive merchandise store could help boost its future bottom line.

For the final quarter of fiscal 2022, Disney+ added 12 million new subscribers, pushing its total number of subscribers up to 164.2 million. The company will likely be pleased with the size of this increase, given that it was only expected to add 9.5 million new subscribers.

Disney+ still has a long way to go before it catches up to Netflix and its 223.09 million subscriptions, but the company has a higher total number of subscriptions than its competition when counting all three Disney streaming services. ESPN subscribers jumped from 22.8 million to 24.3 million, while Hulu was up a million to 47.2 million. That brings the overall total to 235.7 million, up from 221 million in the third quarter. It also beat the company’s expected figure of 233.8 million.

This is the second quarter in a row that Disney posted higher overall numbers than Netflix, although the latter has claimed that Disney mixes subscriptions with subscribers — as in, one person can count as three subscribers if they have subscriptions to Disney+, Hulu and ESPN.

One expectation Disney missed was revenue. The $20.15 billion it brought in in the period ended Oct. 1 was up 9% from the year-ago quarter, but Wall Street was looking for a 15% year-over-year revenue increase to $21.3 billion.

See also  5 most watched episodes of Marvel's Disney+ show

On December 8, Disney+ launches its ad-supported tier, which drops the subscription price from $10.99 per month to $7.99. It will also offer packages that combine Disney+, ESPN and Hulu with ads. Netflix’s ad-supported tier started last week and costs $7 per month.

Disney+ is also testing a new feature that allows subscribers to buy Star Wars, Marvel, Disney Animation Studios and Pixar merchandise directly from the detail pages of selected movies, series and shorts, writes TechCrunch.

Disney+ continues to attract subscribers with original content like Andor, She-Hulk and more. Next year brings more new Star Wars and Marvel shows, and the service will become the international home for new episodes of Doctor Who.

Leave a Reply

Your email address will not be published. Required fields are marked *