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Disney+ now has 152 million subscribers worldwide

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The streaming platform attracted 14.4 million new subscribers between March and June.

The Disney+ platform attracted 14.4 million new subscribers between March and June, bringing its total to 152 million and reassuring a market worried about the risks of saturation of digital services, while the boom linked to the pandemic has ended and consumers face runaway inflation.

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In total, Disney’s streaming platforms — Disney+, Hulu and ESPN+ for sports — now have 221 million subscribers, more than Netflix, the industry veteran that saw its number of paid subscribers drop to 220.67 million at the end of December. June.

The entertainment giant, which took more than 6% on the stock market during electronic trading after the close, also presented a new formula for a cheaper subscription to Disney +, with advertising, according to a press release also published this Wednesday.

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In all, Disney saw its revenue rise 26% year over year to $21.5 billion in the third quarter of its staggered fiscal year, a figure that also beats analyst expectations.

Its net profit halved in one year, to $1.4 billion.

Its amusement parks and spin-offs have reaped the full benefits of resuming in-person activities as the pandemic loosens its grip on daily life around the world. The segment generated $7.4 billion in revenue, 70% more than a year ago.

“Sigh of relief”

“Disney’s core businesses, including theme parks and movie theaters, are recovering but still face headwinds, including an unusually lukewarm reception to Pixar’s latest cartoon, +Lightyear+,” said Insider Intelligence’s Paul Verna. .

Disney +, on the other hand, does not stop delighting the market.

“Investors will breathe a sigh of relief,” the analyst said. The figures of the platform “will be seen as a sign of the good health of the market, especially after the poor results of Netflix and Comcast.”

Launched in late 2019 like a cannonball on the streaming scene, Disney+ now captures more than 45% of the US streaming service’s users, behind YouTube, Netflix, Amazon and Hulu, which is owned by Disney+. Disney, according to figures from Insider Intelligence.

As the pandemic has hit the entertainment empire’s in-person businesses hard, Disney+ has taken off, thanks in part to its massive catalog and successful franchises.

Subscribers but losses

But the group’s massive investments are still far from paying off: During the last quarter, Disney’s three streaming platforms widened their net losses from $300 million to $1.1 billion.

However, it revised certain targets downwards, counting 215 to 245 million subscribers for Disney+ in 2024 (including those of Hotstar, the Indian version of the site), or 15 million less than previously announced.

To achieve that, “Disney+ will have to decide whether to try to expand beyond family content,” said Jamie Lumley, an analyst at Third Bridge.

Star Wars and K-pop

During the current quarter, Bob Chapek, the head of the American group, is counting on new programs to win over new clients, such as “She-Hulk: Avocate”, the new Marvel Studios series, “Andor”, a Star Wars series. Disney’s “Hocus Pocus 2” series and movie.

He also promised, during the conference call to analysts, a documentary series on BTS, the K-pop cult group.

The last quarter has been marked by doubts about the growth of the main entertainment platforms, from Netflix to Facebook to video games.

Netflix thus lost close to a million subscribers between March and June, after having already lost some in the first quarter, for the first time in its history.

Beyond the new content, the industry veteran and its fierce competitor are now employing different strategies to grow their subscriber base and improve their bottom line.

Disney + unveiled this Wednesday a new subscription plan with advertising, for the United States, at 8 dollars per month, which will be offered from December. The one with no ads will increase to $11, or $3 increase. Hulu prices will also go up.

And Netflix, which is preparing a similar option after years of refusing this less prestigious solution, will also tighten the screw on the side of shared identifiers, which allow many people to access their content without paying.

Author: TL with AFP
Source: BFM TV

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