Walt Disney Company Update

Disney registered 12 million subscribers for its flagship streaming service in the most recent quarter, and its customer base has doubled from a year ago, surpassing competitors such as Netflix.

In the quarter ended July 3, the company had 116 million subscribers, twice the 58 million subscribers a year ago and higher than the 115 million subscribers expected by Wall Street analysts.

In contrast, Netflix only added 1.5 million subscribers in the same quarter and lost approximately 430,000 customers in the United States and Canada. Aggravate worry It is vulnerable to new competition.

Disney CEO Bob Chapek said that despite the “continued challenges of the pandemic,” the company is still in a “strong position”. Disney shares rose 5.3% in after-hours trading. The stock was basically flat this year and missed a broader market rebound.

Thanks to lower monthly fees and the Hotstar platform launched in India, Disney has quickly registered subscribers for its streaming service. However, the average fees paid by users are much lower than those of competitors’ services such as Netflix. The average revenue per Disney Plus user this quarter fell 10% from a year ago to $4.16, and India now accounts for nearly 40% of all subscriptions.

Netflix’s senior management refuted any threats from Disney and its peers. Co-CEO Reed Hastings told investors last month that he did not see Disney’s impact on Netflix’s subscriber growth. “Is it HBO or Disney… Is there a different impact compared to the past? We haven’t seen [data]”,” he said. “This gives us comfort. ”

Disney’s theme parks provided another bright spot this quarter, with the reopening of theme parks in the United States, China and France, helping the business turn a profit after suffering a heavy blow last year. The company’s parks and consumer products business had revenue of US$356 million and revenue of US$4.3 billion for the quarter.

As the pandemic continues, Disney and other Hollywood studios have tried to publish big movies along with movie theaters on their streaming services-a move that triggered Actor Scarlett Johansson’s lawsuit last month.

Chapek defended Disney’s decision on Thursday, telling investors that the company’s film distribution strategy reflected a “very uncertain world” and Black widowThe release helped the film “cover the widest audience.”

During the quarter, Disney released streaming movies, including Crura, A reimagined live-action origin story 101 Dalmatian, and Luca, A Pixar adult film set in Italy.

However, Disney is still losing money stream media Because it has invested heavily in content and technology to promote registration. Disney’s direct-to-consumer business units, including Disney Plus, Hulu and ESPN Plus, had an operating loss of US$293 million and revenue of US$4.3 billion.

Disney announced a total of US$923 million in net income and US$17 billion in revenue, and sales have increased by 45% from when it was hit by the pandemic a year ago.

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