Disney+ streaming exceeds expectations with 10 million sign-ups, shares surge




 

By Helen Coster

(Reuters) - Walt Disney Co <DIS.N> on Wednesday said its new streaming service, Disney+, reached 10 million sign-ups since launching the previous day from "extraordinary consumer demand," sending shares up 3.5%.

The strong first day performance appears to establish Disney as a leading player in the streaming wars that pit it against industry leader Netflix Inc <NFLX.O>, Amazon.com Inc's <AMZN.O> Prime Video service, Apple Inc's <AAPL.O> Apple TV+ and AT&T Inc's <T.N> forthcoming HBO Max service.

And although Disney's day one numbers were more than three-times the size of some forecasts, it was not immediately clear how many of these new customers were from free promotions.

In October Disney and telecom provider Verizon Communications Inc <VZ.N> announced a promotion that made all new and existing Verizon unlimited wireless customers, as well as new Fios and 5G home internet customers, eligible for a free, one-year subscription to Disney+.

Ahead of the launch, Disney executives said they expected between 17 million to 19 million new subscribers as a result of the Verizon promotion. Verizon told Reuters in October they expected even more of its customers will have access to the deal.

In April Disney said it plans to reach 60 million to 90 million Disney+ subscribers globally by 2024. In a note on Wednesday, Wedbush analyst Daniel Ives wrote that at its current pace, Disney could hit that subscriber goal potentially two years earlier.

Netflix currently has over 60 million subscribers in the United States and 158 million globally.

Disney+, which launched in the United States, Canada and the Netherlands on Tuesday, was hit with technical glitches that the company said were caused by higher-than-expected demand.

The service costs $7 per month and features roughly 500 movies and 7,500 TV episodes from the company's deep family entertainment catalog as well as new programming. A bundle including ESPN+ and Hulu costs $13.

Disney said moving forward, it has no plans to release Disney+ subscriber data outside of the company's quarterly earnings calls.



(Reporting by Helen Coster; Editing by Lisa Shumaker)

COMMENTS

More Related News

macOS 11.0 Big Sur preview
macOS 11.0 Big Sur preview

My earlier fears that it would fully surrender to the influence of iOS have thus far not come to fruition, but the iPhone's operating system continues to be the clearest indicator of future desktop updates. It's clear, of course, why one of Apple's OSes would borrow so liberally from another. One of the more unsung instances was the surprise reveal that the next version of macOS would be 11.0.

Microsoft
Microsoft's xCloud delayed on iOS as testing halted

Microsoft starting testing its Project xCloud game streaming service on iOS with some fanfare, but the future of the project is now unclear. While Microsoft is preparing to launch the Android version, it has ended its public trial on iOS early, with the app no longer available.

4 High-Quality S&P Stocks With High 6-Month Total Returns
4 High-Quality S&P Stocks With High 6-Month Total Returns

Stocks with high strength and profitability that have gained more than 30% over the past 6 months Continue reading...

Virginia touts nation
Virginia touts nation's first contact tracing app with Apple-Google tech
  • US
  • 2020-08-05 19:27:14Z

Virginia on Wednesday launched the first contact tracing app for the novel coronavirus in the United States that uses new technology from Apple Inc and Alphabet Inc's Google . Phones with the app exchange Bluetooth signals to keep an anonymous list of close encounters. At least three more states are nearing the launch of similar apps, aiming to ease the burden on underfunded manual contact tracing teams.

The best sci-fi movies on Netflix right now
The best sci-fi movies on Netflix right now

Looking for a solid science fiction movie? Our picks range from big-budget dystopias to indie time travelers.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy