Disney sees almost double the number of Disney + subscribers
Disney saw a huge jump in subscribers to its Disney + streaming service for its third quarter, which ended on July 3. According to the results, the number of subscribers increased from 57.5 million in June 2020 to 116 million in July 2021.
Walt Disney Company CEO Bob Chapek praised the company’s growth.
“[O]Our direct-to-consumer business is doing very well, with a total of nearly 174 million subscriptions on Disney +, ESPN + and Hulu at the end of the quarter, and a slew of new content coming to the platforms, ”a- he said in a statement. .
Direct-to-consumer (D2C) revenue for the quarter increased 57% to $ 4.3 billion, according to the results. Meanwhile, the operating loss fell from $ 0.6 billion to $ 0.3 billion, which the company attributed to improving Hulu’s results offsetting the higher loss at Disney +.
The higher loss at Disney + is due to higher programming, production, marketing and technology costs, according to the results. But this was also partially countered by an increase in subscription revenue and leading access revenue for the movie “Cruella”. Higher subscription revenues have shown growth in subscriber numbers and rising costs have shown expansion of the Disney + model, including launches in new locations.
Meanwhile, streaming rival Netflix also posted profits, which were somewhat patchy, PYMNTS reported. They showed the company a little ahead of the forecast for revenue growth, but behind the forecast for the bottom line.
Read more: Netflix attributes mixed second quarter result to ‘shock in our growth’ created by COVID
The letter to the company’s shareholders in the second quarter said the unprecedented backdrop to the pandemic caused the rocky waves the company had seen, with year-over-year growth distortions. The pandemic resulted in strong growth, as people had less to do with the virus, which made public social situations unsafe, so they turned to streaming, TV and movies.