😍 2022-05-12 17:00:41 – Paris/France.
Disney+ continues to ride an unstoppable upward growth line at the moment, as it communicated to its shareholders in its Q2022 7,9 earnings report. The platform increased its subscriber count by 137 million, or a total of 7 million, an increase of 33% compared to last year and a notable increase in expectations: analysts were talking about five million new subscribers on average.
Netflix's problems are Netflix's problems. Undoubtedly, these figures contrast above all with those of its main rival and flagship of the Diffusion. We talked at length about the drop in Netflix subscribers in the first quarter of the year (200 less), which was followed by a sharp drop in the stock market. Even if the situation is not critical for the company, which continues to lead in the number of subscribers, it has led it to take action.
Netflix has identified two issues: the problem of shared accounts, which it will try to solve with discounted accounts for subscribers who use them, and the lack of revenue, which it will solve with in-programming advertisements. Whatever action the company takes, its dominant role in the industry has led to talk of a "commodity bubble". Streaming and a ripple effect that could lead to a similar loss of subscribers on other platforms.
Goodbye bubble. This fear of the bubble bursting comes from a general feeling of platform saturation, but also from certain sector-specific events. Compounding the drop in Netflix subscribers is the shutdown of Warnermedia's CNN+ just 32 days after its launch. And the success of proposals like Peacock (which isn't even finished leaving the US and will arrive in Europe in 2022 under the SkyShowtime umbrella) remains to be seen.
Scott Purdy, head of the KPMG advisory network, put it this way: "The speculative era of Diffusion, to spend a lot and at all costs, is over. He adds, “We are facing a period of zero or slow growth that people thought was coming five years from now, but it is now. Purdy says "there is no place in the US market for 10 providers to have over 100 million subscribers", but the latest results from Disney+ could cast doubt on that.
What awaits Disney+. For the time being, growth, although it is not necessary to throw bells on the fly. Disney Chief Financial Officer Christine McCarthy told the meeting that growth is expected to continue in the second half of the fiscal year, but not to the same extent as expected. All of this translates into a profit of over $19 trillion for this quarter, an increase of 000%. It is also a little less than what had been calculated (about just over 23 million)
Part of these profits come, as Disney+ reports, from reclaiming the rights to a large number of series and films owned by the company, but which continued to be exploited by other platforms. Analysts believe these series could refer to the licenses Netflix held for Marvel movies in various territories, as well as the Marvel hero series produced by Netflix itself, which have definitely returned to Disney+ in recent months.
A wake from Netflix. Among the goals for the near future is the intention to reach between 230 and 260 million subscribers by the end of fiscal year 2024. This figure includes services that are not outside the United States, such as Hulu and ESPN+, among which the sum, added Disney+ 205,6 million, very close to Netflix's 221,6 million. If Disney continues to grow according to your expectations and Netflix continues to decline (or directly, does not grow), 2023 or 2024 will be the year of overtaking.
Disney+ also counts, among its short-term plans, starting its announced plan to include advertising in its programming, with a subscription price lower than the norm. Although no date or form has been given in which this advertisement will take shape, it is expected in the United States by the end of this year.
SOURCE: Reviews News
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