Walt Disney Co. surprised economists and entrepreneurs in recent days by reporting a gain of 14.4 million subscriptions on the company's chief streaming, Disney+ , during the last quarter. Professionals had expected a sequential 10 million gain. With this increase, Disney+ reached 152.1 million subscribers and the company has 221.1 million subscriptions worldwide, including Disney+, Disney+ Hotstar, Hulu and ESPN+.
Netflix has 220.7 million subscribers globally. Analysis by Todd Spangler for Variety shows that Netflix continues to generate more revenue than Disney+. Spangler analyzed the released data through average revenue per user, in which it shows that Disney+ generated just 39% of the revenue generated by Netflix in the United States.
Disney+ Hotstar (available in India and other Southeast Asian countries) also has the same result, showing that the average revenue per user is $1.20 per month. While Netflix comes in at $8.83 per month in the Asia Pacific region. In the US and Canada, Disney+ averaged per user at $6.27 per month, down 5% from a year ago. Netflix saw a 10% increase to $15.95 per month in the same region.
The rise of Netflix may be a result of the increase in the value of the subscription and the fall of Disney in the commercialization of streaming and live TV packages. In addition, Disney's subscription accounting method is questioned by Netflix, since combo subscribers, for example Disney+, Hulu and ESPN+, add up to 3 separate subscriptions. But the company does not disclose the number of these duplicate subscribers.
Now the trend is for Disney+ to assume a role in search of its direct profitability and bet on a more competitive pricing strategy with other streaming's. Netflix, on the other hand, takes a stance to avoid further loss of subscribers with series and movies receiving more generous investments, and even taxation of account sharing with non-family members .
Post a Comment