Disney+ has added 12.1 million subscribers to cross 164 million global subscribers in Q4 of the fiscal year 2022. Reports reveal that the streaming service was expected to gain 9.32 million subscribers.
According to reports, the streaming service is launching its ad-supported tier in the current quarter.
Disney+, Hulu, and ESPN+ had a combined total of 235.7 million subscribers, up from 221 million in Q3. TechCrunch reported that the streaming service overtook rival Netflix for a second time, despite Netflix reaching 223.09 million global subscribers in Q3.
CEO’s statement
“2022 was a strong year for Disney, Bob Chapek, CEO of The Walt Disney Company, wrote in a letter to shareholders. According to a Bloomberg report, he reiterated his forecast that Disney+ will be profitable in fiscal 2024. He said price increases and the introduction of a new ad-supported version will help the company’s direct-to-consumer unit reach that goal.
Nevertheless, the company fell short of expectations for total revenue, reported to be $20.15 billion. Wall Street estimated that Disney would report a 15 per cent year-on-year jump in revenue to $21.3 billion. The direct-to-consumer division lost $1.5 billion. “Our financial results this quarter represent a turning point as we reached peak DTC operating losses, which we expect to decline going forward,” Chapek told investors.
Also read: Netflix opens new gaming studio in Southern California, seeks to expand cloud gaming