Disney+ subscriptions have just edged past those of streaming media pioneer Netflix.
The Walt Disney Company reported adding 14.4 million Disney+ subscribers across its streaming platforms in its third quarter, for a total of 221 million total subscriptions.
Netflix, in its June quarter report, said it had 220.67 million subscribers, after losing almost 1 million from the March quarter.
Bob Chapek, CEO at The Walt Disney Company: “We continue to transform entertainment as we near our second century, with compelling new storytelling across our many platforms and unique immersive physical experiences that exceed guest expectations, all of which are reflected in our strong operating results this quarter.”
Total Disney+ revenue in the quarter was $US152.1 million.
The result came at a cost, including programming and production, technology and marketing costs, partially offset by increases in subscription revenue and, to a lesser extent, advertising revenue.
However, Disney is confident that Disney+ will achieve profitability in 2024.
The Disney+ ad tier service goes live on December 8. Pricing will be along the lines of the current monthly subscription. The current no-advertising model will cost more.
In the US, Disney+ will be $7.99 a month with advertising and $10.99 without.
Chapek told a briefing of analysts: “The advertising demand since the launch of Disney+ is great.
“And we think that by taking a conservative approach in terms of that ad load upfront, it will give us the ability to expand if we need to and not have to go the other way, which I think would be a much bigger deal.”
Netflix also is working on an advertising supported tier to its subscriptions.
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