Disney’s Streaming Services Hits 205 Million Subscribers Despite Decrease in Profit

Disney has reported a decrease in income for the first quarter of 2022 at $470 million, a little over half of their previous $912 million profit from the same period last 2021, but announced strong growth in its streaming services’ subscribers. Disney+, the company’s television streaming service has now gained over 137 million subscribers, previously from only 7.9 million subscribers. The company says if including additional subscriptions to Disney+’s platforms such as ESPN and Hulu, the total number of subscribers is now at 205 million.

Disney+’s growth in subscribers has exceeded analysts’ previous expectations, while its industry rival Netflix has experienced a dip in subscribers during the first quarter of 2022. Tech analyst Rob Enderle of Enderle Group tells AFP, “Disney+ has been taking Netflix out at the knees,” Enderle adds, “Kids have always chased their content, and for parents, it has been a no-brainer to get their service.” Disney executives also said in an earnings call that half of Disney+’s subscribers are families with children.

Disney previously stopped licensing their content to Netflix, migrating it instead to their exclusive streaming service, Disney+. The company says they will be maintaining this strategy with other rivals in the market.

Apart from Disney’s own streaming service that continues to grow rapidly, the company’s parks and resorts have now also been operating without any significant stringent COVID-19 restrictions that were in place the previous year. “Our strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services once again proved that we are in a league of our own,” says Walt Disney Company’s chief executive Bob Chapek.

Source: ABS CBN News