Disney+ Subscribers Rise Up To More Than 70 Million
The global coronavirus pandemic has drastically changed the way people get their entertainment, with streaming coming to the forefront. While Netflix is the clear frontrunner, Disney+ is catching up as it adds even more subscribers.
Variety reports that the fledgling Disney+ streaming service has now amassed 73.7 million paid subscribers as of last month. With the increase, Disney+ is now the second biggest streaming service in the United States, with Netflix, the only one with a bigger number of subscribers.
Disney CEO Bob Chapek was the one who broke the news during an earnings call. Chapek called Disney+ and Disney’s direct-to-consumer business the future of the company and a bright spot in the midst of the global coronavirus pandemic.
Aside from Disney+, the Disney-owned Hulu has also increased its number of paid subscribers to 36.6 million. This is an increase of a million from June when it only had 35 million subscribers. ESPN, on the other hand, grew its subscribers to 10.3 million.
Financially, these direct-to-consumer products and Disney’s international segments have contributed $4.9 billion to the company’s revenue this quarter.
CNN says that the positive news on Disney+ subscribers was enough to boost Disney stock by as much as five percent in trading after-hours. The rise in stock was a needed piece of good news as the company continues to feel the economic effects of the global coronavirus pandemic.
During the same earnings call, Disney revealed that there was a six percent drop to their revenue compared to last year. Revenue for 2020 is only at $65.3 billion, with the fiscal year loss amounting to $2.8 billion.
The 73.7 million paid subscribers are a 20 million increase from last April’s 50 million subscribers. That increase came during the height of the lockdowns brought about by the global coronavirus pandemic and when the service was rolling out in European countries and India.
The 50 million subscribers is an increase from the 26.5 million subscribers that the streaming service started out with. Back then, the increase also resulted in a seven percent jump in Disney shares during after-hours trading.
Focusing on Disney+ and their direct-to-consumer products is definitely a better strategy for Disney, as it looks like the global coronavirus pandemic isn’t going away anytime soon. According to the World Health Organization’s Nov. 12 update, there are now 51,848,261 confirmed COVID-19 cases worldwide. Deaths caused by COVID-19 are now at 1,280,868 people.
The Nov. 12 update from the Centers for Disease Control and Prevention pegs the number of confirmed COVID-19 cases in the country at 10,314,254 people in the United States. The number of people that have died from COVID-19 I the United States is now at 241,069 people.