US entertainment giant Disney on Wednesday blew past expectations for new subscribers to its flagship streaming service, as its big studio muscle brings the fight to rival Netflix.
Disney+ reached 129.8 million subscribers worldwide, some five million more than analysts had predicted, resulting in a roughly eight percent jump in the firm’s shares in after-hours trades.
“Our unmatched collection of assets and platforms, creative capabilities, and unique place in the culture give me great confidence we will continue to define entertainment for the next 100 years,” Walt Disney Company CEO Bob Chapek said in an earnings statement.
The company, with an empire that stretches from movies to theme parks and also includes streamers Hulu and ESPN+, reported profit that topped forecasts on revenue which surged to $21.8 billion in the final three months of 2021.
Disney+ subscriber numbers boomed under the lockdown lifestyles brought about by the pandemic and have become ever larger in the rearview mirror of streaming giant Netflix. But the platforms’ fortunes have diverged somewhat since.
Netflix ended the year with 221.8 million subscribers, a massive number, but it announced slowing growth that drew immediate market punishment leaving its shares about 20 percent lower in recent weeks.
Analysts pointed to Disney’s broad brand power as helping its streaming platform’s growth.
