Disney+ has welcomed 12.1 million new subscribers for the company’s fourth fiscal quarter ending on October 1st, and according to Yahoo Finance, that’s 3 million more than analyst estimates. In all, Walt Disney added 14.6 million subscriptions for Disney+, Hulu and ESPN+, bringing its total number of streaming subscribers so far to around 236 million. While Disney+ alone with its 164 million subscribers have yet to reach Netflix numbers, all three of the company’s services combined had amassed members that can rival the streaming giant’s. Netflix revealed that it has around 223.09 million subscribers during its latest earnings report in October.
Despite the impressive growth in subscriber number, Disney’s operating loss for streaming increased from $0.8 billion to $1.5 billion for the quarter. Disney+ experienced more losses within the period due to higher production and technology costs, as well as an increase in marketing expenses. There were also no Premier Access releases for the quarter, such as last year’s Black Widow and Jungle Cruise. That said, the losses were offset in part by higher subscription costs, which will become even higher in December.
Walt Disney CEO Bob Chapek said that the company expects its streaming losses to narrow going forward, thanks to its price increases and the launch of an ad-supported tier on Disney+. The company even believes that Disney+ is on track to achieving profitability in the fiscal year of 2024, assuming the lack of a “meaningful shift in the economic climate.” If you’ll recall, Disney is raising its streaming prices across the board this December, and the ad-supported tier for Disney+ is launching on December 8th for $11 a month.
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