Disney+ rises as Netflix falls.
With so many streaming services out there, it’s a tough market to gain the most eyeballs. Netflix used to be the most dominant of this arena as the first service to offer exclusive streaming movies and television for a subscription price. As studios have splintered into developing their own streaming services, competition has become intense. Although Netflix still brings in viewers with their record-breaking series Stranger Things, their subscriber counts are falling.
Disney recently announced their third quarter earnings for 2022 and it is looking like their streaming service Disney+ is still a huge success. Disney+ now has 152.1 million subscribers but keep in mind that this is not the only streaming channel they offer. Hulu is now at 46.2 million subscribers and ESPN+ is now at 22.8 million subscribers. Part of the success for the other channels may be due in part to Disney offering all three as a packaged deal. With all of these channels combined, Disney has 221.1 million subscribers.
While Disney has more subscribers than Netflix, they are not making as much money. According to Variety, the revenue is still much lower when compared to Netflix. This is because the subscription price for Disney+ is lower on its own and even lower when considering the package that includes Hulu and ESPN+.
In order to become more profitable and still attract new subscribers, Disney+ announced they’ll be establishing a cheaper ad-supported tier. This follows with the subscription plans currently in place for the likes of Hulu, HBO Max, and Peacock. Disney may be hoping this new tier will bring in more users and money as the next option to keep numbers up would be to raise the streaming price up higher. Given that we’re currently experiencing a recession, it’s unlikely that Disney wants to go down this route.
Netflix and Disney+ are now the top competitors in the streaming wars. When comparing the two, Disney has more subscribers while Netflix has more money. It remains to be seen just how well the ad-supported tiers will work for both of them.
Disney certainly has the IPs to compete though. They currently have access to Marvel, Star Wars, Pixar, and National Geographic. All of these properties have new TV shows and specials coming out regularly on Disney+. Meanwhile, Netflix is tapping into a variety of different properties with their latest show being an adaptation of Nail Gaiman’s The Sandman.