Entertainment giant Disney has seen another jump in subscribers to its Disney+ streaming platform.
With the flagship of its new strategy, it puts even more pressure on Netflix, whose growth is stalling.
Disney+ reached 137.7 million subscribers, up 33% year-on-year.
Between late December and early April, the group from Burbank (California) gained 7.9 million subscribers to its subscription video service.
The figure contrasts with that of its big competitor Netflix, which lost 200,000 accounts over the same period, when the platform had not experienced a decline for more than ten years.
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Disney expects Disney+ subscribers to increase in the April-September period compared to the first quarter of its staggered fiscal year, which was October-March, Chief Financial Officer Christine McCarthy said.
For its part, Netflix expects to lose two million subscribers in the current quarter compared to the previous one.
Target 230 to 260 million subscribers by fiscal year 2024
Within the video, cinema and television branch, online video services remain in the red and posted an operating loss of 887 million dollars over the quarter, approximately 844 million euros.
To stimulate the growth of its streaming platforms in particular, Disney plans to devote a total of 32 billion dollars to content (around 30.5 billion euros), including sports, during its 2022 fiscal year. ESPN+, which specializes in sports, and Hulu, which is more adult-oriented than Disney+, the entertainment company had more than 205 million subscriptions at the start of April, although some users subscribe to a plan that offers all three services at an advantageous total price.
Chief Executive Bob Chapek said Disney is still aiming for a range of 230-260 million Disney+ subscribers by fiscal year 2024 (completed at the end of September 2024), which could put it ahead of Netflix, which currently has 221 million accounts.
He also expects to see streaming become profitable by then.
To accelerate its growth, the platform is counting on the launch of an offer with advertising by the end of the year in the United States, and in 2023 internationally.
Disneyland Paris boosts park profits
Bob Chapek also indicated that Disney is already considering offering a streaming version of ESPN that contains all of the sports television network's programming, and not just a limited selection as is the case with ESPN +.
However, he clarified that the transition would not take place in the short term, because Disney still derives substantial revenue from subscriptions to ESPN via traditional cable and satellite television in the United States.
In total, the company's profit came to 597 million dollars (about 568 million euros), down 46% and very much below analysts' expectations.
The Disney action thus sold more than 3% in electronic trading after the closing of Wall Street, the American Stock Exchange.
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In the other major activity of the group, the parks, Disney more than doubled its turnover over one year (+ 109%).
It was driven by attendance at Disneyland Paris, which was partially dampened by a drop in Hong Kong and Shanghai, China.
Spending per visitor is 40% higher than its level in the same quarter of 2019, i.e. before the pandemic.
From January to March, the parks generated operating income almost equivalent to that of video, cinema and television, while they posted a heavy loss last year, due to restrictions linked to Covid-19.
Financial director Christine McCarthy nevertheless warned that the resurgence of the pandemic and the confinements could cut operating profit for the current quarter by 350 million dollars (around 333 million euros).
