In its new business report, Disney proudly announced that it has surpassed Netflix in total subscribers to its streaming services (Disney+, Hulu, and ESPN+). While Netflix’s user count has decreased to 223 million, Disney’s total surpassed 236 million in October.
The largest share comes from the Disney+ platform, which boasts 164 million users. However, despite this growth, the operating loss in the last quarter increased by $0.8 billion to $1.5 billion due to global macroeconomic challenges, higher production and marketing costs.
Nevertheless, Disney CEO Bob Chapek expects an increase in profitability in fiscal 2024. The reason for optimism lies in the fact that advertising revenue on Disney+ will increase, and that the subscription price will rise to $11 starting December 8.
– I believe our operating losses will decrease and that Disney+ will be profitable next year even if there is no significant shift in the economic environment – Chapek said in a media release, adding that a profitable streaming business will drive further growth and generate long-term value for shareholders.
