The Walt Disney Company overtook Netflix in total subscribers with 221 million and said that it will hike pricing for those who wish to view content without commercial commercials on the Disney+ or Hulu platforms.
When it launches a new alternative that includes commercials at current pricing in December, the media conglomerate will hike the monthly cost of its ad-free Disney+ programme by 38% to $10. 99.
On Wednesday, Disney shares surged 6.9% in after-hours trade to $120.15.
In 2017, Disney staked its future on establishing a streaming service to compete with Netflix, as viewers shifted to internet viewing rather than pay-TV and broadcast TV.
Disney beat Netflix in terms of broadcast customers five years later.
And the firm was able to attract 14.
4 million users to the Disney+ service, topping analysts’ average projections in a FactSet study with up to 10 million subscribers after the airing of the Star Wars and Miss Marvel series.
In all, Disney reported that its streaming services, which include Disney+, Hulu, and ESPN+, had 221. 1 million users at the end of the June quarter. Netflix claims to have 227 million customers.
To entice new consumers, Disney will launch an ad-free version of its streaming service on December 8 for $7.99 per month, the same as the existing ad-free version.
Hulu will hike its costs in December by a dollar or two, depending on the subscription plan.
Disney now expects 215 million to 245 million Disney+ subscribers by the end of September 2024, down from 230 million to 260 million originally anticipated.
Disney reported adjusted earnings of $1 for the quarter ending July 2.
09 per share, up 36% year on year as attendance to its theme parks increased.
The company’s overall earnings increased by 26% year on year to $21.5 billion, beating analysts’ projections of $20.96 billion.
Disney surpasses Netflix in membership numbers and intends to boost rates.
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