Walt Disney Co. on Wednesday surpassed Netflix Inc. in number of subscribers for the first time. The American media conglomerate managed a total of 221 million streaming subscribers at the end of the last quarter. Along with this, he announced that will launch an ad-supported Disney+ option in December.
In 2017, Disney banked on creating a streaming service to rival Netflix as audiences moved to online viewing from traditional cable and broadcast TV. In the quarter just ended, Disney added 14.4 million Disney+ customers.
In this way, it exceeded the average of 10 million expected by analysts surveyed by FactSet, in a period in which the series premiered. Obi-Wan Kenobithe Star Wars, y Ms. Marvel, from Marvel. Combined with Hulu and ESPN+, the company registers 221.1 million streaming subscribers while Netflix reported 220.7 million.
With regard to earnings, it posted an adjusted earnings per share of $1.09, 36% more than the previous year, thanks to the visitors who filled its theme parks. Operating income more than doubled in the parks, experiences and products division, totaling $3.6 billion.
Nevertheless, Disney’s streaming division continues to lose money, with a negative result of 1.1 billion dollars in the quarter. That weighed on the media and entertainment unit, whose profit fell 32% to nearly $1.4 billion.
Total revenue was up 26% from a year earlier to $21.5 billion. The median of analysts surveyed by Refinitiv had pointed to revenue of $20.96 billion.
“Disney+ with will cost $7.99 (1,126 Argentine pesos) per month, the same price that the company now charges for the ad-free version,” Disney said in an official statement. The cost of Disney+ without ads will increase by $3 per month, to $10.99 (1548 Argentine pesos)starting next December 8.
Meanwhile, prices for Hulu, also owned by Disney, will go up $1 to $2 a month depending on the plan. Disney shares, which had fallen 28% this year, rose 4% in following-hours trading and following the news was announced.
With information from Archyde.com