Q3 Earnings Announcement on the 10th (Local Time)
Disney+ Net Subscriber Growth Plummets Compared to Previous Quarter
"Marvel and Pixar Original Content Launching in Q4"
[Asia Economy Reporter Cha Min-young] In the third quarter, Netflix saw a net increase of 4.4 million paid subscribers, driven by hits like "Squid Game," while Disney Plus (+) recorded a net increase of only 2.1 million subscribers.
On the 10th (local time), Disney announced in its earnings conference call after market close that its streaming service Disney+ added 2.1 million net subscribers in the third quarter (Disney’s own fiscal fourth quarter). This was a significant decrease compared to the 12.6 million added in the previous quarter.
The total number of Disney+ subscribers reached 118.1 million, up just 1.8% from 116 million in the previous quarter. US-based CNBC noted, "Subscriber numbers are still increasing, but growth is slowing."
Competitor Netflix successfully rebounded in the third quarter, thanks to the success of Korean original series Squid Game and others. Netflix’s quarterly subscriber growth was 4.4 million net additions, expanding from 1 million in the previous quarter, dispelling market concerns about Netflix’s slowdown. According to Bloomberg, Netflix’s revenue from Squid Game is estimated to be close to 1 trillion won. The show also sparked a global phenomenon with numerous parodies.
Netflix also provided a brighter outlook for the fourth quarter. Netflix stated it expects a net increase of 8.5 million new subscribers in the fourth quarter, driven by a recovery in content supply. On the other hand, at a Goldman Sachs event last September, Disney CEO Bob Chapek said that growth in the Disney+ segment "faced some headwinds," and predicted that streaming subscriber growth in the fourth quarter would be only a few million, a modest increase.
However, Disney Chief Financial Officer (CFO) Christine McCarthy emphasized during the earnings conference call that "the fourth quarter will be the first quarter in which Disney, Marvel, Star Wars, and Pixar will release original content all in one quarter," including highly anticipated titles such as "Ms. Marvel" and "Pinocchio."
The easing of the global pandemic has had a complex impact on the streaming market. CNBC pointed out, "As the spread of the virus slows, outdoor activities have increased, and streaming service growth has also slowed," but added, "Nevertheless, the general trend of increasing streaming subscribers is expected to continue." Content production is also expected to become more active.
Meanwhile, Disney is launching Disney+ this month in many Asian regions, including South Korea. The service will begin in South Korea on the 12th, with an exclusive IPTV contract with LG Uplus. In the mobile sector, both LG Uplus and KT will provide the service together.
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