Disney tops Netflix streaming subscribers, announces price hike for Hulu and Disney+
Disney+ and Hulu prices will rise for both platforms in December.
Walt Disney Co. edged past Netflix In. with a total of 221 million streaming subscribers at the end of the most recent quarter and announced it will launch a Disney+ option with advertising this December.
Disney+ with ads will cost $7.99 per month, the same price the company now charges for the ad-free version, Disney said in a statement on Wednesday. The cost of Disney+ without ads will increase by $3 per month to $10.99 as of Dec. 8.
Prices for Hulu, also owned by Disney, will rise by $1 to $2 per month depending on the plan.
DISNEY WORLD PRICES SURGE 3,871% OVER 50 YEARS, CHART SHOWS
Shares of Disney, which had fallen 28% this year, rose 4% in after-hours trading to $116.85.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 113.97 | +0.22 | +0.19% |
Disney in 2017 staked its future on building a streaming service to rival Netflix as audiences moved to online viewing from traditional cable and broadcast television.
In the just-ended quarter, Disney added 14.4 million Disney+ customers, beating the consensus of 10 million expected by analysts polled by FactSet, as it released "Star Wars" series "Obi-Wan Kenobi" and Marvel's "Ms. Marvel."
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Combined with Hulu and ESPN+, Disney said it had 221.1 million streaming subscribers at the end of the June quarter. Netflix said it had 220.7 million streaming subscribers.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NFLX | NETFLIX INC. | 555.12 | -22.39 | -3.88% |
Disney posted adjusted earnings-per-share of $1.09, up 36% from a year earlier, as visitors packed its theme parks. Operating income more than doubled at the parks, experiences and products division to $3.6 billion.
Disney's streaming effort is still losing money, reporting a loss of $1.1 billion for the quarter. That put a drag on the media and entertainment unit, whose profit declined by 32% to nearly $1.4 billion.
The newly painted Cinderella Castle at the Magic Kingdom at Walt Disney World is seen with the crest to celebrate the 50th anniversary of the theme park Monday, Aug. 30, 2021, in Lake Buena Vista, Fla. Disney is fighting back against a move to repeal (AP Photo/John Raoux, File / AP Newsroom)
Overall revenue rose 26% from a year earlier to $21.5 billion. A consensus of analysts polled by Refinitiv had projected revenue of $20.96 billion.
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(Reporting by Lisa Richwine and Dawn Chmielewski in Los AngelesEditing by Kenneth Li, Peter Henderson and Matthew Lewis)