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Disney Plus adds around 8 million new subscribers while Netflix struggles

Disney also claims to be generating more money with each Disney Plus subscription than it was previously

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Disney Plus adds around 8 million new subscribers while Netflix struggles

Disney stated in its Q2 earnings report on Wednesday that it attracted 7.9 million new customers to its Disney Plus streaming service during the first three months of 2022. This takes the total to about 87.6 million individuals globally, excluding the 50.1 million people who are subscribed to Disney Plus Hotstar overseas. Disney Plus currently has 44.4 million customers in the United States and Canada, 7.1 million more than a year ago.

The business also said that total subscriptions for all of its streaming services (including Hulu and ESPN Plus) had surpassed 205 million, up from 196.4 million in January.

This is more positive news than the one Netflix recently received. The streaming service said last month that it had lost 200,000 customers compared to the previous quarter, its first drop in almost a decade. It is also growing faster than HBO and HBO Max, which announced 3 million new members in the previous quarter (at around 77 million total customers, HBO is still very much trailing Disney). It’s also worth remembering that Netflix has about 222 million customers.

Disney also claims to be generating more money with each Disney Plus subscription than it was previously, at least in the United States. Its average monthly revenue per paying member has increased from $6.01 to $6.32. This is due to “an increase in retail prices and a reduced percentage of wholesale subscribers,” according to Disney.

Despite this, Disney Plus is costing the corporation more money than it was previously. Disney attributes this to greater production, advertising, and technological expenditures. These expenses are unlikely to decrease, and boosting rates, as Netflix did, might stifle subscriber growth. All of this explains why Disney is considering establishing an ad-supported tier sooner rather than later.

One final point of interest comes right at the top of Disney’s earnings. The corporation says that its revenue increase occurred despite the fact that it forfeited a billion dollars in income by terminating a customer’s licence agreement for film and television programming early in order to use the content on its own streaming services. The report did not say who of Disney’s customers was involved in this agreement, but the corporation was clearly ready to take a huge penalty to have something on Disney Plus. Variety and The Hollywood Reporter believe that this may be about the Marvel episodes that were previously available on Netflix before being unceremoniously switched to Disney Plus in March.

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