Disney reported its fiscal Q2 2022 results on Wednesday with some pretty positive numbers. And when it comes to the Disney+ streaming platform, it beat subscriber expectations for the quarter. This comes as Netflix has been losing users and reconsidering its business model.
As reported by CNBC, Disney+ closed the quarter with 137.7 million subscribers, while industry analysts expected about 135 million subscribers. In the second quarter alone, the platform gained 7.9 million new users. In the words of Disney CEO Bob Chapek, the strong results prove that Disney is in “a league of our own.”
Counting ESPN+, Hulu, and other Disney-owned streaming platforms, the company now has more than 205 million subscribers. Last year, Disney revealed its goal of reaching at least 230 million Disney+ subscribers by 2024.
The numbers were good enough to make Disney’s stock rise almost 5% in after hours trading. Industry analysts were “keen” to see that Disney+ has been able to reach new users while Netflix has been struggling with its platform. Earlier this year, Netflix revealed that it lost 200,000 subscribers last quarter, with the expectation of losing up to 2 million in the coming months.
Netflix blames “unpaid accounts” for these numbers, which is how the company refers to users who use passwords shared by friends and family. The platform later announced that it is working on measures to crack down on password sharing, while it has also been considering launching a new ad-supported plan for a lower price.
Both Disney+ and Apple TV+ are cheaper than Netflix. And although Netflix has a considerably larger catalog than any other streaming platform, subscribers have been complaining that the company doesn’t renew most shows, which makes them lose interest in the platform. The result, as we can see, is Netflix losing ground to other smaller streaming platforms.
