[Asia Economy Reporter Jeong Hyunjin] Disney's online video service (OTT) Disney Plus has gained nearly 8 million subscribers since the beginning of this year. While concerns arose that the streaming industry might enter a recession due to Netflix's subscriber decline, Disney Plus showed contrasting results.
According to CNBC and other media on the 11th (local time), Disney announced in its fiscal second-quarter results (January 2 to April 2) that Disney Plus added 7.9 million new subscribers during this period. As a result, the total number of subscribers increased by 6% compared to the previous quarter, reaching 137.7 million. The market had initially expected 5 million new subscribers and a total of 135 million subscribers, but the actual figures exceeded these estimates.
Earlier, at the end of last month, Netflix announced in its first-quarter results (January to March) that its subscriber count had decreased for the first time in 10 years since the company's founding. It also warned that an additional loss of about 2 million subscribers could occur in the second quarter (April to June). Following this, concerns about the streaming industry grew, and the market awaited the performance announcements of services like Disney Plus.
Disney owns streaming businesses including Disney Plus, ESPN Plus, and Hulu. Foreign media reported that the combined subscriber count of these three streaming services reached 205 million, approaching Netflix's 222 million subscribers. Bob Chapek, Disney's Chief Executive Officer (CEO), expressed optimism, stating, "We expect to achieve our goal of securing 230 million to 260 million subscribers by 2024."
Supported by subscriber growth, Disney's total revenue rose 23% year-on-year to $19.2 billion (approximately 24.5 trillion KRW). Although total revenue was initially expected to exceed $20 billion, a revenue loss of $1.02 billion occurred due to the termination of licensing contracts for TV shows and others, slightly reducing the total. The market's revenue forecast for Disney was $20.05 billion.
Disney also announced that revenue from its parks, experiences, and products segment, including Disney World and Disneyland Resort, more than doubled year-on-year to $6.7 billion. Increased visitor numbers, hotel reservations, and ticket price hikes drove the revenue growth. Disney stated that while international travelers have begun returning, the levels have not yet recovered to pre-COVID-19 standards. During the reporting period, Hong Kong and Shanghai Disneyland were closed due to COVID-19 lockdown measures; Hong Kong Disneyland reopened in April, but Shanghai Disneyland remains closed.
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