In its fiscal second quarter, Disney added over 8 million new customers to its streaming service, Disney+.
As of the conclusion of the quarter on April 2, Disney+ had 137.7 million global subscribers, up from 129.8 million the previous quarter. The number was up about 20 million from six months ago and up 33% from 103.6 million in the same period last year.
The consensus among Wall Street analysts was for Disney+ to attract 5.2 million users, with only the most optimistic forecasting gains in the millions.
Hulu now has 45.6 million members, including 3.8 million who subscribe to its live TV bundle, which is up 10% year over year. ESPN+ grew 62 percent from the same quarter a year ago, reaching 22.3 million subscribers, thanks to an inflow of live sports and high-profile docuseries.
The average revenue per user (ARPU) for Disney+ climbed by 9% to $4.35. Because it is a low-cost add-on via Hotstar in India and other South Asian areas, it is less expensive than many large streaming competitors.
The Hotstar package, which accounted for 50.1 million subscribers, or around 36% of the total, was the driving force behind Disney+‘s growth. Disney+Hotstar grew 42 percent year over year, compared to Disney+ outside of Hotstar, which grew 28 percent.
Disney+ got off to a great start when the corporation decided to focus its strategy on direct-to-consumer streaming a few years ago. It began to sag as it reached two years in the market, so the corporation funneled general-entertainment titles like The Beatles: Get Back and Dancing With The Stars to the platform, looking for options beyond the Marvel, Star Wars, and Pixar core.
Despite the growing subscriber base, investors’ faith in Disney’s streaming future has waned, with the company’s stock down more than 30% in 2022 to date, along with several other media and tech stocks. It dropped another 2% today, closing at $105.25, its lowest level in almost two years, but rallied slightly in after-hours trade. Netflix’s recent financial troubles have cast a veil over emerging streaming aspirants, implying a potentially smaller universe of possible subscribers and a shakier profitability outlook for all challengers.
In late 2020, the corporation increased its objectives for the end of fiscal 2024 to 300 million to 350 million overall streaming subscribers and 230 million to 260 million for Disney+, citing the success of the bundle with Hulu and ESPN+. As of April 2, the firm has 205.6 million total streaming customers with a little more than two calendar years until the end of fiscal 2024.
The company’s fiscal second quarter, especially the month of March, saw a surge in original programming, with debuts for Cheaper by the Dozen, Marvel’s Moon Knight, and Pixar’s Turning Red. Encanto‘s enchanted run began in 2022 and appeared to boost quarterly earnings.