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Disney+ misses on Q1 subscriber estimates, reaching 103.6M subscribers vs. 109.3M expected; ESPN+ subscribers rose 75% YoY to 13.8M, and Hulu grew 30% YoY to 41.6M. (Variety)

As Disney+ prepares to launch in Canada, its quarterly earnings report indicates it’s on track to reach its goal of 104 million subscribers, which will only add fuel to the speculation surrounding the company’s potential acquisition by 21st Century Fox. Disney reported that the company’s Disney+, ESPN+, and Hulu Live TV streaming services reached 103.6 million subscribers during the quarter, representing a 5 percent increase year-over-year. However, the company missed analyst expectations of 109.3 million total subscribers, which represents a 2 percent increase year-over-year. Despite declining subscribers, Disney+ still had a strong first quarter: Its average paid monthly subscriber price rose to $10.15 from $9.96 in the same period last year, while average revenue per paid subscriber rose to $17.32 from $16.89.

How Disney+ subscriber growth is more dependent on international markets?

Disney+ launched in November 2019. ESPN+ is still growing steadily, though it’s worth noting that the company is now taking steps to expand into international markets. ESPN+’s International Growth Team (IGT) hired a new VP to head this initiative. “We are taking a multi-year approach to our global strategy to ensure ESPN+ reaches every market,” said Kevin Mayer, ESPN+ Chief Revenue Officer, in a statement. “The new role of VP, International Growth will be critical to executing on that strategy and ensuring we reach new audiences in regions around the world where fans want to watch their favorite sports.” The company has been investing heavily in its international expansion

 How Disney+ has also been gaining traction with streaming bundles that include the service?

You’ll be able to watch content from both Disney and Fox through the service for a flat fee of $6.99 per month, with the caveat that you must live in the U.S., have a credit card, and be 18 years old or older. Content available will include Disney+ originals like The Mandalorian and existing Fox TV series. Other content will include some Fox shows (like Empire) that are currently exclusive to Hulu, plus some new originals from Disney. Disney+ also has a feature that lets viewers share their screen to watch with others (think of it like having a viewing party).

How Disney+ missed on subscriber expectations in Q1?

Disney+ didn’t manage to keep subscribers happy, according to new research. In the first quarter of 2019, Disney+ added 3.5 million subscribers and 3.8 million. But the company only managed to add 2.3 million of those 3.8 million subscribers, meaning it only gained a small percentage of its subscribers compared to the previous year. On top of that, Disney+ has a long way to go to catch up to Netflix. Disney+ is still only available in the U.S., while Netflix is available in 190 countries and streaming to over 130 million people worldwide.

 conclusion

In conclusion, Disney has struggled in the direct-to-consumer streaming business, though investors still see growth opportunities. Analysts at Goldman Sachs expect that Disney’s DTC service will earn $750 million in 2019, up from $480 million in 2018, according to analysts led by Richard Greenfield.

FAQS 

1. Why did Disney+ miss on Q1 subscriber estimates?

The main reason was that Disney+ could not meet the subscriber expectations of the company. Disney+ only added

2. Why did Disney+ gain fewer subscribers than expected?

The main reason is that the new streaming service is priced higher than Netflix and Amazon Prime.

3. What’s the biggest misconception about Disney+?

The biggest misconception is that it’s only for Disney movies. The biggest misconception is that it’s a streaming service, not a cable or satellite channel. It’s a great service but has so many things you can’t get on Netflix.

4. What do you think of Disney+’s original content?

I think that Disney+ is doing a good job with its original content. They are putting out great shows, and I hope they continue doing so.

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