Disney+ Streaming Service Ends Q1 With 94.9 Million Subs

Walt Disney’s branded subscription streaming video service Disney+ continues to impress, ending the first quarter (ended Jan. 2) with 94.9 million global subscribers. The service ended the previous-year period with 26.5 million subscribers. In a continuing trend, 30% of Disney+ subs come from India via Disney+ Hotstar (and IPL cricket league), with further growth from operations in Latin America.

Hulu finished the quarter with 35.4 million subs, compared with 27.2 million subs at the end of 2019. Online TV platform, Hulu+Live TV, ended the quarter with 4 million subs, compared to 3.2 million in the previous-year period. The increase in Disney+ subs and costs reflected the ongoing expansion of the service, including launching in additional markets.

Overall, Disney now has 146 million paid over-the-top video subscribers to its services, when including ESPN+, which ended the quarter with 12.1 million subs, compared to 6.6 million in the previous-year period.

In studio results, a lack of content in the both the theatrical and retail pipeline negatively affected revenue. In home entertainment, the decrease in results was due to lower unit sales, partially offset by lower marketing costs. The prior-year quarter reflected the performance of Toy Story 4, The Lion King and Aladdin compared to no significant titles in the current quarter.

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Theatrical distribution was lower as there were no significant worldwide theatrical releases in the current quarter compared to Frozen II, which was released in the prior-year quarter. The current quarter was negatively impacted by COVID-19 as many theaters globally were either closed or operating at reduced capacity.

Regardless, CEO Bob Chapek said direct-to-consumer would continue to drive Disney during the pandemic and beyond.

“We believe the strategic actions we’re taking to transform our company will fuel our growth and enhance shareholder value, as demonstrated by the incredible strides we’ve made in our direct-to-consumer business,” Chapek said in a statement. “We’re confident that, with our robust pipeline of exceptional, high-quality content and the upcoming launch of our new Star-branded international general entertainment offering, we are well-positioned to achieve even greater success going forward.”

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