It seems every streaming platform not named Netflix is doing great these days, as Disney Plus just announced its Q2 2022 financial report, and it added almost 8 million users.
Disney Plus is on a roll, boasting 87.6 million subscribers at the end of the first three months of 2022, after onboarding 7.9 million users. This was apart from the 50.1 million subscribers to its Disney Plus Hotstar outside the US.
Most of the platform’s users are in the US and Canada, numbering 44.4 million. The two countries alone contributed 7.1 million new users within the last year.
Disney’s other streaming platforms, including Hulu and ESPN Plus, now have more than 205 million users, increasing from 196.4 million reported for the last quarter of 2021.
This compares with Netflix, which reported a loss of 200,000 subscribers during the same period, the first time it lost users. Disney Plus reported a faster growth rate than even the platforms that did not lose subscribers during the period. For instance, HBO and HBO Max reported 3 million new users with a total of 77 million accounts. However, Netflix still dwarfs all of them with more than 220 million users.
One other streaming platform that fared worse than Netflix is CNN Plus, which flopped hard a few weeks after launching.
Meanwhile, Disney reported its earnings from each subscriber increased, jumping from $6.01 to $6.32. The company said the increase is due to having a smaller share of its subscriber base being on the cheaper tier.
However, Disney still lost more money than before. The company blamed this on rising production, advertising, and technology acquisition costs. On the bad side, the costs don’t seem likely to come down anytime soon. And if the company has learned anything from Netflix, raising prices will lead to a declining subscriber base. However, Disney is looking at the likely way out; introducing a tier that is supported by ads.
Disney also revealed that it sacrificed billions of dollars in revenue to get out of a license agreement for television and film before it expired. This was done to be able to offer the content on Disney Plus. While the content owner was not named, there are speculations that the content belonged to Marvel, which had some shows on Netflix that moved over to Disney Plus two months ago.
“Our strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services—with 7.9 million Disney+ subscribers added in the quarter and total subscriptions across all our DTC offerings exceeding 205 million—once again proved that we are in a league of our own,” said Bob Chapek, Chief Executive Officer, The Walt Disney Company. “As we look ahead to Disney’s second century, I am confident we will continue to transform entertainment by combining extraordinary storytelling with innovative technology to create an even larger, more connected, and magical Disney universe for families and fans around the world.”