Disney Plus reached a new milestone last quarter, but earnings took a sizable hit, as the company attempts to deal with uncertain times…
Streaming has hit an all-time high during the pandemic quarantines. One service that’s perhaps benefited the most is new-comer Disney+, which now tops 60.5 million paying customers. This, after hitting 54.5 million in May, which represented an increase of 62 percent in the previous five weeks.
Disney Plus Reaches 60.5 Million Subscribers
To put this in perspective, analysts predicted Disney+ would reach between 10 and 18 million subscriptions in its first year and 60 to 90 million subscribers over five years time. However, it amassed 10 million subscriptions in just 24 hours. Then, it surpassed 28.6 million less than 3 months later.
Now, it’s topped 60+ million, but it’s not all good news. The company also experienced a huge decline in revenue. Though it totaled $11.78 billion. that’s down steeply from $20.2 billion the year before. For instance, studio earnings fell by an enormous 55 percent, with $1.7 billion, compared to $3.8 billion last year.
Disney’s other streaming services, Hulu and ESPN+, also grew. Hulu grew by 27 percent to reach 35.5 million subscribers, while ESPN+ grew by 100 percent, year-over-year, to include 8.5 million subscribers. Meanwhile, company-wide revenue fell 42 percent year-over-year to $11.8 billion, with earnings per share for the quarter recorded a loss of $2.61.