After Netflix lost nearly a million subscribers in the second quarter of this year , it seems that competitor Disney is doing exceptionally well. Moreover, Disney’s streaming platforms now total over 221 million subscribers, surpassing Netflix, which had 220.67 million subscribers in the second quarter, according to BBC.
According to the financial report for the second quarter, Disney is performing very well. Total revenues increased by 26 percent compared to last year, while profits amount to 1.5 billion dollars. Following the announcement of the results, the stock value jumped by more than 6 percent.
– The results firmly confirm my belief that Disney is in a different phase of growth than Netflix – said Paolo Pescator, an analyst at PP Foresight, adding that the stock price jump is a ‘key moment in the streaming wars‘.
New Ad-Funded Service
A particularly surprising development was the addition of 14.4 million new subscribers to Disney +, and a new streaming service for the U.S. market has been announced for the end of this year, which will be ad-funded and available in other countries starting next year. Although the monthly subscription price for this service will remain the same at 7.99 dollars, subscribers who wish to use the ad-free streaming service will pay a monthly subscription of 10.99 dollars.
However, Disney states that they are not afraid that higher prices will deter subscribers from using the service, noting that advertisers have already shown significant interest in collaboration.
– We are already in a position of strength with a record advantage in advertising – said Bob Chapek, CEO of Disney, during the company’s financial results meeting, according to BBC.
