Disney catches up with Netflix: how the streaming platform has grown

Disney+ welcomed 12.1 million new subscribers for the company’s fiscal fourth quarter that ended October 1, and according to Yahoo Finance, that’s three million more than analyst estimates.

In total, Walt Disney added 14.6 million subscriptions for Disney+, Hulu and ESPN+, bringing its total streaming subscribers to about 236 million so far. While only Disney+, with its 164 million subscribers, has yet to reach Netflix’s numbers, all three of the company’s services combined have amassed memberships that can rival the most popular streaming giant. Netflix revealed that it has about 223.09 million subscribers during its last earnings report in October.

Disney+ wants to slowly-slowly catch up to Netflix

Despite impressive subscriber growth, Disney’s streaming operating loss increased from $0.8 billion to $1.5 billion for the quarter. Disney+ incurred more losses in the period due to higher production and technology costs, as well as increased marketing expenses. There were also no Premier Access releases for the quarter, such as Black Widow and last year’s Jungle Cruise. That said, the losses were partially offset by higher subscription costs, which will become even higher in December.

Walt Disney CEO Bob Chapek said the company expects its streaming losses to narrow in the future, thanks to price increases and the launch of a sustained level of ads on Disney+. The company even believes Disney+ is on track to reach profitability in fiscal 2024, assuming no “significant change in the economic climate.”

It’s important to note that Disney is raising its streaming prices in December, and the sustained ad tier for Disney+ launches on December 8 for $11 per month.