London Daily

Focus on the big picture.
Saturday, May 31, 2025

Disney overtakes Netflix in battle for subscribers

Disney overtakes Netflix in battle for subscribers

Disney will launch a new ad-supported streaming service in the US in December, as it overtakes Netflix in the race for paid subscribers.
The firm reported 221.1 million subscribers across its three streaming platforms at the start of July.

That put it just ahead of Netflix, which has been losing customers.

But Disney warned that its loss of streaming rights for cricket in India would reduce its subscriber growth compared to previous forecasts.

The firm, which also owns adult television streaming platform Hulu and the sports-focused ESPN+, said demand for its Disney+ product remained strong.

Pandemic lockdowns provided a boost to streaming services like Disney, but the easing of Covid restrictions doesn't seem to be preventing it attracting new customers.

The company added 14.4 million Disney+ subscribers in the quarter, many of them outside of the US - far more than analysts had expected.

Later this year it will launch a new ad-funded service, which will still be charged at the current subscription rate of $7.99. The charge for the ad-free service will rise to $10.99 per month.

The firm plans to launch its ad-funded service outside the US next year.

Executives said they do not expect the rise in prices to put off customers over the long term. The firm is also seeing strong interest from companies hoping to advertise on the new service, they said.

"We are in a position of strength with record upfront advertising commitment," chief executive Bob Chapek told analysts in a conference call to discuss the firm's financial results.

Disney's subscriber gains have come at a hefty cost, with its streaming business losing $1.1bn in the quarter.

Executives said they expect losses to peak this year, In the meantime, a strong rebound in attendance at its theme parks since the worst of the pandemic has provided the firm with a large financial cushion.

Total revenues in the April-June period jumped 26% from last year, pushing profits to $1.5bn.

Shares in the company jumped more than 6% in after-hours trade after the firm shared its results.

Paolo Pescatore, analyst at PP Foresight, called it a "pivotal moment in the streaming wars" saying Disney had more room to grow than arch-rival Netflix.

Netflix lost nearly one million accounts in the most recent quarter, putting its subscriber total at 220.67 million.

The results "firmly underline my belief that Disney is at a different phase of growth to Netflix", said Mr Pescatore. "There are still millions of users to acquire as it continues to expand into new markets and rolls out new blockbuster shows".
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×