Disney outpaces Netflix in streaming subscribers and growths costs 

The media behemoth will raise the monthly price of Disney+ without advertisements by 38% to $10.99 in December when it begins to offer a new option that includes ads for the current price. 

Highlights –  

• The media juggernaut will raise Disney+ monthly fee without commercials by 38% to $10.89 in December. 
• Netflix is having trouble gaining new subscribers, while Disney is increasing its market share, said Haris Anwar of establishing an investment.com. 
• Disney now anticipates between 215 million and 245 million total Disney+ users, which is fewer than the 230–260 million it had previously forecast. 
• Average sales rose by 26% from a year earlier to $21.50 billion, surpassing the $20.96 billion projection of industry analysts. 

Walt Disney Co. overtook Netflix Inc. in terms of overall streaming subscribers with 221 million, and it recently said it will raise prices for users who want to watch Disney+ or Hulu without commercials. 

The media giant will increase the monthly cost of Disney+ without advertisements by 38% to $10.89 in December as it begins to develop and provide a new option that includes ads for the existing price. 

After-hours trading on Wednesday saw a 6.9% increase in Disney shares, taking the price to $120.15. 

As viewers switched from traditional cable and broadcast tv to online viewing in 2017, Disney bet its future on creating a streaming service to compete with Netflix. 

Disney said it had 221.1 million streaming customers at the end of the June quarter when Hulu and ESPN+ were included. The number of streaming subscribers according to Netflix was 220.7 million. 

According to creating an investment.com expert Haris Anwar, “Disney is growing market share while Netflix is struggling to acquire more users.” 

A version with advertisements will debut from Disney

Disney will start offering an ad-supported edition beginning on December 8 for $7.99 a month, the same amount it now charges for the ad-free version, to attract more users, the company said. 

In December, depending on the plan, Hulu subscription costs will increase by $1 to $2 per month. 

The loss of cricket rights in India was the agency’s primary justification for lowering its long-term subscription prediction for Disney+ clients on Wednesday. 

With the release of September 2024, Disney now projects between 215 million and 245 million total Disney+ subscribers that number is lower than what Disney had predicted, which was between 230 and 260 million. 

For the first time, Disney separated its estimations for Disney+ Hotstar users in India from those for the rest of Disney+. 

Finance officer Christine McCarthy claims

By September 2024, according to chief financial officer Christine McCarthy, Disney expects to attract between 135 million and 165 million new customers, including up to 80 million Disney+ Hotstar subscribers. 

McCarthy stated that the company still anticipates a profit from its streaming television division in 2024. The division suffered a loss of $1.1 billion in the most recent sector. 

Disney reported adjusted profits per share of $1.09 for the fiscal third quarter that ended on July 2, up 36% over the same period last year as tourists flocked to its theme parks.

In the parks, stories, and goods sector, operating profits more than quadrupled to $3.6 billion. 

The media and entertainment unit’s revenue decreased by 32% to over $1.4 billion as a result of streaming losses. 

Compared to a year ago, average sales increased by 26% to $21.50 billion, above the expert forecast of $20.96 billion.  

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