Disney Looks to ’24 for Profits from Streaming Service

Disney+ has boosted its number of paid subscribers by 20% in the United States and Canada and by 57% internationally over the last year, The Walt Disney Company said Tuesday (Nov. 8) in a press release. 

That brought the company’s flagship streaming service’s total number of members to 46.4 million in the U.S. and Canada and 56.5 million internationally, according to the release. 

In addition, the number of Disney+ Hotstar paid subscribers grew 42% to 61.3 million. 

“The rapid growth of Disney+ in just three years since launch is a direct result of our strategic decision to invest heavily in creating incredible content and rolling out the service internationally,” The Walt Disney Company CEO Bob Chapek said in the release. 

Chapek added that the company expects to see its direct-to-consumer (DTC) losses narrow and that Disney+ will still achieve profitability in fiscal year 2024, “assuming we do not see a meaningful shift in the economic climate.” 

This will be aided by the upcoming launch of an ad-supported tier of Disney+, which is scheduled for Dec. 8, Chapek said. 

As PYMNTS reported in March, the firm said an ad-supported subscription would expand the streaming service to a broader audience at a lower price point. 

Among the company’s other offerings, in terms of paid subscribers, ESPN+ was up 42% to 24.3 million and Hulu edged up 8% to 47.2 million. 

“Our fourth quarter saw strong subscription growth with the addition of 14.6 million total subscriptions, including 12.1 million Disney+ subscribers,” Chapek said. 

In sum, the company’s DTC streaming services now have 235.7 million members, with 164.2 million for Disney+, 47.2 million for Hulu and 24.3 million for ESPN+, according to the release. 

Competitor Netflix reported Oct. 18 in a shareholder letter that it added 2.41 million global streaming paid memberships during the most recent quarter, bringing its total members to 223.09 million.