It seems to have been a fairytale quarter for Disney (DIS, $112.43) as its stock jumped amidst a positive earnings call and a boost in subscribers for its streaming service. Following the news its shares rose by 6%. Subscription numbers indicate that it has overtaken Netflix (NFLX, $244.11) as the market leader and seemingly fighting off supposed market saturation.
Subscriptions rose to 152.1 million during the fiscal third quarter, higher than the 147 million analysts forecasted. At the end of the fiscal third quarter, Hulu, ESPN+, and Disney+ will have a combined 221 million+ streaming subscribers. This should be caveated however, as Disney is expected to shed some subscribers after losing streaming cricket rights in India, where a big chunk of Disney+ subs are based.
Revenue wise it raked in $21.5 billion versus $21 billion expected whilst its EPS stood at $1.09 vs $0.96 expected. It also announced that during the fiscal third quarter Disney+, Hulu and ESPN+ combined to lose $1.1 billion, reflecting the higher cost of content on the services. In a bid to make its services more profitable it also announced a new pricing structure that incorporates an advertising-supported Disney+.