LOS ANGELES — Disney+ added 14.4 million subscribers in its most recent quarter, defying the slowdown in streaming that has plagued Hollywood recently. That’s about 45 percent more than Wall Street expected, and Disney’s streaming portfolio of his services has boosted him to 221 million subscribers worldwide. netflix.
Disney released the numbers Wednesday as part of its blockbuster quarterly earnings report. The company also announced price increases for Disney+, Hulu, and ESPN+, as well as details for a new version of his Disney+ that includes ads.
But it was strong demand for theme-park vacations that boosted Disney’s profitability, even as economists fear inflation will dampen consumer spending. Revenue totaled $21.5 billion, up 26% from the prior year. Operating income he rose 50% to his $3.6 billion. Analysts expected revenue of about $21 billion and profit of about $3.2 billion, according to FactSet.
Economists have long viewed Disney theme parks as an informal barometer of consumer confidence. That doesn’t seem to be happening: Disney Parks, Experiences and Products reported sales of $4.3 billion to $7.4 billion in the same period last year, and operating profit of $356 million to $2.2 billion.
A year ago, due to the coronavirus pandemic, most Disney theme parks were operating at reduced capacity and Disney Cruise Line was not operating at all. Disney parks and cruise ships are generally operating without coronavirus-related capacity restrictions. . New vehicles are also available.
Cable TV, Disney’s traditional financial engine, is becoming increasingly strained as the pace of consumers canceling their cable connections accelerates. In the U.S., about 7.5% of cable customers cut cable in the most recent quarter, up from 4% a year earlier, according to estimates by research firm LightShed Partners. Cable channels have slashed the best non-live sports programming. That content is now being sent to streaming services.
But a change in the timing of this year’s National Basketball Association finals, soccer show, and Academy Awards gave Disney’s traditional TV business a bright quarter. The division, which includes ABC, ESPN, FX, Disney Channel and National Geographic, had revenues of $7 billion, up 3% year over year, and profits of $2.5 billion, up 13% from his previous year.
Streaming, on the other hand, continues to suffer losses as Disney invests aggressively in its content, marketing, and technology infrastructure. Losses from Disney’s streaming division surpassed $1 billion, compared to his $300 million loss the year before. Streaming revenue he increased 19% to $5.1 billion.
Starting December 8th, the current ad-free version of Disney+ will cost $8 to $11 per month. The cost of the ad-supported option is $8.
Prices for bundles of Disney’s three streaming services range from $13/month (with ads) to $20/month (Disney+ or Hulu without ads, ESPN+ with ads).
“We will provide more consumer choice at different price points to meet the diverse needs of our audience and appeal to an even wider audience,” said Kareem Daniel, chairman of Disney Media & Entertainment Distribution. said in a statement.
According to Disney, Hulu has about 46.2 million subscribers, an 8% increase from the previous year. Nearly 23 million people paid to access ESPN+, a 53% increase. Disney+ subscribers he had 152.1 million, an increase of 31%.
