Disney surpasses Netflix in subscribers and will launch streaming with advertising in December

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Walt Disney surpassed Netflix with a total of 221 million streaming subscribers at the end of the second quarter of this year and announced that it will launch a Disney+ plan with advertising in December.

In the quarter just ended, Disney added 14.4 million customers to Disney+, surpassing the 10 million expected by analysts polled by FactSet.

Combined with Hulu and ESPN+, Disney said it had 221.1 million streaming subscribers in the quarter ended June. Netflix reported that it had 220.7 million subscribers.

The company, however, has lowered its subscriber forecast and now projects between 215 million and 245 million total Disney+ customers by the end of September 2024 — from 230 million to 260 million previously forecast.

The adjustment came from lowered expectations for India, where the company is losing broadcast rights to Indian Premier League cricket matches.

To protect streaming margins, the media giant has announced that it will increase the price of the ad-free version of Disney+ by nearly 38% when it launches the ad-supported plan.

Disney+ with ads will cost $7.99 a month in the US, the same price the company now charges for the ad-free version, Disney said in a statement on Wednesday. The cost of ad-free Disney+ will increase by $3 per month to $10.99 starting December 8.

Pricing on Hulu, also owned by Disney, will increase from $1 to $2 per month, depending on the plan.

Disney shares, which have fallen 28% this year, were up 4% in post-trade trading to $116.85.

Disney reported adjusted earnings per share of $1.09, up 36% from a year earlier as guests filled its theme parks. Operating profit more than doubled in the parks, experiences and products division to $3.6 billion.

Disney’s streaming effort, however, is still losing money, with a loss of $1.1 billion for the quarter. That hurt the media and entertainment unit, whose profit fell 32% to nearly $1.4 billion.

Overall revenue increased 26% year-over-year to $21.5 billion. Analyst forecasts compiled by Refinitiv projected revenue of $20.96 billion.

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