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The House of Mouse is advancing at a good pace to challenge the current king of streaming – Netflix – faster than originally expected.
According to a new eMarketer report, Disney + is on track to exceed $ 4 billion in US subscription revenue by 2022, helping to solidify the Walt Disney Company as the second company in the streaming market with a market share. almost the same as Netflix.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| DIS | WALT DISNEY COMPANY | 173.73 | +0.18 | + 0.10% |
| NFLX | NETFLIX INC. | 513.97 | -0.51 | -0.10% |
Disney and Netflix officials declined to comment.
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EMarketer’s revenue forecast estimates that Disney + US subscription revenue will reach $ 1.94 billion by the end of this year. In addition, Disney’s $ 1 price increase recently announced next year could potentially add another billion in revenue in each of the next two years, totaling $ 4.23 billion in 2022.
Disney + currently represents 26.5% of Disney’s over-the-top (OTT) subscription revenue, with Hulu and ESPN + accounting for 67.6% and 5.8%, respectively.
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During the media giant’s Investor Day presentation earlier this month, the company announced that Disney + has exceeded 86.8 million subscribers since its launch in November 2019. Disney said it expects that number to grow to somewhere between 230 million to 260 million subscribers by 2024.
The eMarketer report suggests that Hulu will help consolidate The Walt Disney Company’s position as the second streaming player. Disney is expected to earn $ 12.36 billion in OTT subscription revenue in the U.S. by 2022, compared with $ 12.95 billion for Netflix.
Hulu now has a total of 38.8 million subscribers, with its cable cutting option Hulu + Live TV reaching 4 million subscribers, the fifth largest pay TV provider in general. Hulu is expected to have between 50 million and 60 million subscribers by the end of fiscal year 2024.
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Eric Haggstrom, forecast analyst for eMarketer at Insider Intelligence, said that the initial growth of Disney subscribers was driven by such successful programs as “The Mandalorian” and Disney’s vast library, as well as major distribution deals and a huge boost of marketing.
“It is expected to continue to grow from that base [Disney] increases the release of content and brings some movies straight to the service, instead of a release in the cinema in some cases. “
Disney noted that it would spend between $ 14 million and $ 16 million on streaming content between now and 2024, with the company announcing more than 50 new projects in development, including 10 new Marvel series, 10 new “Star Wars” series , 15 Disney live-action, Disney Animation and Pixar series, and 15 new live action films from Disney, Disney Animation and Pixar.
However, Haggstrom acknowledged that the streaming landscape continues to expand, with total sector revenue expected to rise 29.9% next year, to $ 38.15 billion, and to rise another 19.4% in 2022.
“The good news for mainstream Netflix is that while new services like Disney + have been successfully launched, many consumers are simply bundling services together,” said Haggstrom.
Netflix reported that its streaming service surpassed 195.15 million global subscribers in the third quarter in October, an increase of 23.3% year on year, but below Wall Street expectations.
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In a letter to shareholders, Netflix said it expects subscriber growth to return to pre-COVID levels in 2021.
“We continue to see quarterly quarterly fluctuations in paid net adds as not so significant in the context of long-term adoption of Internet entertainment, which we believe is still early and should provide us with many years of strong future growth and we continue to improve our service” , wrote Netflix.
The company expects six million net adds paid in the fourth quarter, compared with 8.8 million a year ago.