The Strategist

Disney overtakes Netflix in the number of subscribers in Q2

08/12/2022 - 10:24

After surpassing Netflix Inc. with 221 million subscribers for its streaming service, Walt Disney Co. stated that it would increase pricing for members who want to watch Disney+ or Hulu without advertisements.

The media conglomerate will increase the cost of a monthly Disney+ ad-free subscription by 38% to $10.99 in December. At the same time, it will start promoting a new option with advertisements for the going rate.

Following the trading day on Wednesday, Disney shares grew by 6.9% to $120.15.

Thanks to the release of the Obi-Wan Kenobi series from the Star Wars franchise and Marvel's Miss Marvel miniseries, the Disney+ service drew 14.4 million new subscribers, surpassing FactSet's consensus projection of 10 million subscribers.

At the end of June, Disney had 221.1 million streaming subscribers (including Hulu and ESPN+), while Netflix had 220.7 million.

On December 8, Disney will introduce a new version of its service, supported in part by advertising, at $7.99 per month in an effort to attract new users. For the time being, the business charges that amount for the service's ad-free version.