Disney got into the OTT platform business for quite some time now, however, from last year since the lockdowns and COVID, their online entertainment business is getting bigger and better. It even increased in pricing for their plans but Disney believes that its recent subscription price hike is not such a bad thing.
They are changing its business model a bit as most movie theatres are still not occupied in full and the revenue generated previously is not the same anymore. So, by launching new exclusive shows on the app and launching movies on Disney Premier Access, the company is making a profitable business.
However, their foundation solely relies on how much addition they are making in terms of paid subscribers. Though Disney+ did have a slow Q2 2021, in Q3, Disney+ has beaten analyst expectations for subscriber growth, reaching a whopping 116 million paid subscribers.
This even beats the 114.5 million predictions by Wall Street and goes to show a 100% year-over-year increase in subscribers. That obviously brought some great revenues – a whopping $17.02 billion in revenue versus the $16.76 billion expected with earnings per share of 80 cents, even beating analysts’ expectations of 55 cents.
The report also says that thanks to the wider availability of Disney+ Hotstar in Asia have helped them to gain more subscribers. However, this has led to lowered average monthly revenue per user (ARPU) in the quarter due to its lower price points.
In the Q3, Disney+’s ARPU declined from $4.62 to $4.16 due to a higher mix of Disney+ Hotstar subscribers compared to the same quarter last year, naturally, because the subscription charge of Disney + Hotstar is subsequently lesser.
Also Read: The Effect of Disney on Subscription Video On Demand Market
