The latest quarterly figures from Disney show that, across its streaming portfolio (including Disney+, Disney Hotstar, Hulu and ESPN+) the company has now amassed more streaming customers than Netflix. As of the end of the June quarter, the company has reached a total of 221.1 million subscribers worldwide, edging ahead of Netflix which currently has a total of 220.7 million.
Over the last quarter, Disney+ garnered an additional 14.4 million customers and the company forecasts it will have between 215 million and 245 million total Disney+ subscribers by September 2024. This represents a decline from its previous forecast of between 230 million to 260 million.
Reuters reports that Disney’s shares rose by 6.9% in after-hours trading to $120.15 last after the release of the quarterly report. While the company’s D2C revenues for the quarter increased 19% to reach $5.1B, its operating loss also increased from $0.8B to $1.1B. According to the company, the increase in operating loss was due to a higher loss at Disney+, reflecting “higher programming, production, technology and marketing costs.” Disney also attributes the higher operating loss to lower operating income at Hulu and (to a lesser extent) a higher loss at ESPN+.
Bob Chapek, Chief Executive Officer, The Walt Disney Company, said: “We had an excellent quarter, with our world-class creative and business teams powering outstanding performance at our domestic theme parks, big increases in live-sports viewership, and significant subscriber growth at our streaming services. With 14.4 million Disney+ subscribers added in the fiscal third quarter, we now have 221 million total subscriptions across our streaming offerings.
“We continue to transform entertainment as we near our second century, with compelling new storytelling across our many platforms and unique immersive physical experiences that exceed guest expectations, all of which are reflected in our strong operating results this quarter.”
The company also announced a $3 price increase for the ad-free tier of Disney+, which will cost $10.99 per month from December, when it rolls out its ad-supported tier in the U.S. for the current price.
