Disney reported blowout fiscal third-quarter earnings after the bell Thursday, beating Wall Street expectations on subscriber growth which is now at 116 million subscribers, revenue, and earnings.
Jessica Bursztynsky and Sarah Whitten for CNBC:
Shares were up more than 5% [after the bell Thursday].
• Earnings per share: 80 cents vs 55 cents expected in a Refinitiv survey of analysts
• Revenue: $17.02 billion vs $16.76 billion expected in the surveyThe company beat on subscriber estimates for Disney+, coming in at 116 million. StreetAccount estimated the company to report 114.5 million subscribers in its third quarter. The segment had 103.6 million in its fiscal second quarter.
Average monthly revenue per subscriber for Disney+ dipped 10% year-over-year to $4.16. The company attributed the dip to a higher mix of Disney+ Hotstar subscribers compared to the prior-year quarter.
Disney’s average revenue per user has shrunk in recent quarters because of the lower price points for its Disney+ and Hotstar bundle in Indonesia and India. The service has lower average monthly revenue per paid subscriber than traditional Disney+ in other markets, pulling down the overall average for the quarter.
MacDailyNews Take: Congrats to Disney+ closing in on the 125 million subscribers milestone.
With oodles of Disney, Pixar, Star Wars, Marvel, and more exclusive releases coming to Disney+ in the next few years, Netflix is facing overwhelming competition now. The easy days are over for Netflix. Competition among multiple strong services will likely work its magic to keep monthly prices down for consumers, too. — MacDailyNews, December 11, 2020
Of course, Apple TV+, at just $4.99 per month, doesn’t have to disrupt Netflix and/or Disney+ by taking subscribers; it’s additive. Most people who already subscribe to Netflix and/or Disney+ will simply add Apple TV+, not drop Netflix and/or Disney+ for it. — MacDailyNews, February 11, 2021
I would have to agree with MDN that AppleTV+ is additive. However if it is in addition to other major streaming services like Netflix and Disney+, ATV+ will be a ‘seasonal’ option that will be subscribed to for a month maybe a couple times a year to binge shows and cancelled till the next ‘binge’.
I think One is the main product. TV+’s main function is not to stand on its own as a separate product, but to be just one more additive thing to tip the scales.
I’ll put the Apple Service fee towards services that provide much broader content. In the end, get MORE while spending LESS…