Disney+ beats subscriber estimates in Q2 2022 while Netflix struggles

Disney reported its fiscal Q2 2022 results on Wednesday with some pretty positive numbers. And when it comes to the Disney+ streaming platform, it beat subscriber expectations for the quarter. This comes as Netflix has been losing users and reconsidering its business model.

As reported by CNBC, Disney+ closed the quarter with 137. 7 million subscribers, while industry analysts expected about 135 million subscribers. In the second quarter alone, the platform gained 7. 9 million new users. According to Bob Chapek (Disney CEO), the results show that Disney has “a league of its own .”

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Counting ESPN+, Hulu, and other Disney-owned streaming platforms, the company now has more than 205 million subscribers. Last year, Disney revealed its goal of reaching at least 230 million Disney+ subscribers by 2024.

The numbers were good enough to make Disney’s stock rise almost 5% in after hours trading. Analysts in the industry were surprised to learn that Disney+ was able to attract new customers while Netflix is struggling to maintain its service. Earlier this year, Netflix revealed that it lost 200,000 subscribers last quarter, with the expectation of losing up to 2 million in the coming months.

9to5Mac’s Take

Netflix blames “unpaid accounts” for these numbers, which is how the company refers to users who use passwords shared by friends and family. Later, the platform announced it was working to reduce password sharing and that it had been looking at launching an ad-supported plan with a lower cost.

At same time, Apple TV+ seems to be having fun. With award-winning movies and series, the global market share of Apple’s streaming platform has grown in recent months and is now getting close to HBO Max – although it’s still a long way behind Disney+, Amazon Prime Video, and Netflix.

Both Disney+ and Apple TV+ are cheaper than Netflix. Netflix’s catalog is vastly larger than other streaming platforms, but subscribers complain that Netflix doesn’t renew many shows. This makes Netflix less appealing. As you can see Netflix is losing ground to smaller streaming services.