Disney+ gained more than 12 million subscribers, but is still at a loss

Disney+ gained 12.1 million subscribers in the past quarter, bringing the streaming service to a total of more than 164 million users. Despite the continued increase in the number of subscribers, the service, including sister brands such as Hulu and ESPN, was again at a loss.

The Walt Disney Company’s streaming division suffered a loss of more than $1.47 billion in the past quarter, up from $630 million in the same quarter last year, according to the recent report. fourth quarter figures of fiscal year 2022. The affected arm consists of Disney+, Hulu and ESPN+. The last two services gained 8 and 42 percent more subscribers, respectively, in the past quarter.

Despite the increase in subscribers, revenue per customer in the home market fell by more than 10 percent for Disney+. Subscribers from other markets yielded about 4 percent more per individual, but due to ‘adverse effects of international exchange rates’ this potentially positive effect was counteracted. ESPN+’s revenue per customer rose marginally, while Hulu lost a few percent.

In its own words, the Disney+ streaming service should become profitable from early 2024, provided there are no unexpected external economic influences. The company wants to achieve this by charging higher subscription prices and rolling out an advertising subscription, which is planned for December 8.

All other branches of The Walt Disney Company are doing well. Thanks in part to the successful theme parks and licensing deals, the company achieved a 9 percent increase in turnover to more than 20 billion dollars in the past quarter. Operating profit remained roughly the same compared to last year: just under $1.6 billion. The company’s annual result is also purely positive. Revenue recorded in fiscal 2022 rose 23 percent to nearly $81 billion. Operating profit rose by more than half to more than $12 billion.

Update, 4.40 pm: The original post compared The Walt Disney Company’s entire streaming arm to some Disney+ figures. The article has been edited to better reflect this difference. Thanks to THETCR.