Disney Plus gains almost 8 million new subscribers globally as Netflix witnesses a slump

Just when Netflix witnessed its biggest dip in subscriber count and revenue in the last 10 years, its competitor Disney Plus garnered almost 8 million subscribers in the same quarter. In the Q2 earnings report, Disney Plus announced to have added 7.9 million new subscribers on board, making a total of 87.6 million worldwide. These numbers are excluding the 50.1 million Disney Plus Hotstar subscribers in India.

Disney Plus gains 8 million subscribers

According to the company, streaming offerings including Hulu and ESPN have also grown to more than 205 million, up by 196.4 million. Disney is further earning more per subscriber as its average monthly revenue per paid user has increased to $6.32 from $6.01. The company gives credit to an “increase in retail pricing and a lower mix of wholesale subscribers” for this jump.

However, Disney believes that it is still losing money due to the high cost of production, advertising and technology. It does not want to increase the subscription cost, which was partially responsible for the Netflix subscriber dip, hence, introducing an ad-supported tier makes more sense. Disney Plus has already confirmed that it will introduce an ad-supported tier in 2023.

This is something Netflix is planning to release in the last three months of 2022 along with paid password sharing feature.

For the unversed, Netflix reported a drop of 2,00,000 subscribers in the last quarter of 2022 and the company believes that it is going to drop even further in the next quarter.

As per a statement by Disney, “Revenues for the quarter and six months grew 23% and 29%, respectively, despite a $1.0 billion
reduction for the amount due to a customer to early termination license agreements for film and television content delivered in previous years in order for the Company to use the content primarily on our direct-to-consumer services.”

Disney Plus’ most popular films and shows right now are Marvel’s Moon Knight, Pixar’s Turning Red, Encanto and so on.

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