Disney Plus exceeded expectations and recorded an increase of 7.9 million subscribers. The company submitted its financial results corresponding to Q2 2022 where the number of 137.7 million subscribers worldwide on your video service at streaming. Unlike Netflix, Disney continues to add subscribers to its varied content offering.
Despite the good figures, Disney projects subscriber numbers could decline in coming quarters. Christine McCarthy, Disney’s chief financial officer, acknowledged that the first half of the year was stronger than expected. The company confirmed that the average income per Disney Plus subscriber went from $5.14 to $6.35 due to an increase in prices. This figure also includes users of the Star+ service in Latin America.
An important fact is the $1 billion loss from early termination of content license agreements. The company did not offer specific details, although this figure would have to do with a penalty for canceling contracts with Netflix to transmit original Marvel series and other specific content.
As Disney Plus celebrates, Netflix prepares to lose more subscribers
As Disney executives celebrate the achievement, on Netflix things don’t look good. The company lost 200,000 subscribers for the first time in a decade, setting off red flags among its shareholders. the fever of streaming that was experienced during the COVID-19 pandemic loses strength and has hit Netflix significantly. The most worrying thing is that the loss of users could amount to two million during the next quarter.
To deal with the impending slowdown, both Netflix and Disney Plus plan a cheaper ad-driven subscription. Netflix would have already notified its employees that it will implement it before the end of 2022. With this strategy, the company would reduce the loss of subscribers and would lead to the integration of a system that prevents password sharing.
Cheap subscriptions with ads would be the future strategy
Disney believes that the combination of a cheap subscription with ads and the traditional model They will help increase your user base. “That will give us the ability to adjust our price while maintaining our strong value position,” said Bob Chapek, CEO of the company. The secret lies in the quality of your catalog, as according to Chapek “great content will drive our subscriptions, and more subscriptions will drive profitability.”
Date of high in Disney Plus now and save thanks to the annual subscriptionwith which you can enjoy its entire catalog of series and movies, access to the latest releasesto the catalog of Star and to the best National Geographic documentaries.
In this last plan, Disney Plus has the advantage. Mickey Mouse’s house has on the horizon series like Obi-Wan Kenobi, Ms Marvel, She-Hulk or the reboot from Blade. For its part, Netflix is preparing new seasons of stranger things, cobra kai, The Umbrella Academy and the expected return of Love, Death & Robots.
Although Disney is expected to invest a considerable amount to emerge victorious in the war of the streamingother services such as HBO Max, Prime Video, Paramount + or Apple TV + will not sit idly by to see how it happens.