The Walt Disney Company (NYSE:DIS) left its video streaming rivals coughing in its wake after growing its subscriber numbers for the past quarter and reiterated its breakeven target for the Disney+ service.
There were 14.4mln net additions in what was the group’s third quarter, driving its total paying customers to 221mn, claiming to be just above rival Netflix’s 220.67. Analysts had expected 10mln new subs.
Revenues and earnings also came in higher than Wall Street estimates, with the streaming growth accompanied by what chief executive Bob Chapek called an “outstanding performance” at Disney World and Disney Land in the US and big increases in live-sports viewership on ESPN.
While the owner of the Star Wars and Marvel franchises cut its guidance for Disney+ Plus subscribers to 245mln by 2024 from the previous 260mln, after losing the rights to stream IPL cricket in India, Chapek and co set out how they plan to make the streaming business profitable by 2024.
Disney plans to raise the price of its Plus, Hulu and ESPN streaming services, starting in the US in December, with Disney+ hiked to US$10.99 a month from the current US$7.99.
For more price-sensitive viewers, new ad-supported pricing options will also be rolled out, starting with a US$7.99 a month option in the US.
Third-quarter results showed revenues of US$21.5bn, up 26% on a year ago as theme park sales jumped 70% as attendance rose above pre-pandemic levels, partially offset by a decrease at Shanghai Disney Resort, which was only open for three days in the quarter due to lockdowns.
Net income increased 53% to US$1.4bn, equivalent to earnings per share of US$1.09 per share.
Wall Street analysts forecast revenue of US$20.6bn with EPS of US$1.00 per share.