Disney Shares Surge After Subs Soar More Than Expected

Disney shares are surging higher after-hours, erasing all the post-NFLX plunge as it appears Disney+ is stealing subs from Netflix.

After all the streamers were hit on NFLX disappointing subscriber growth on 1/20; Disney has just reported that at the end of 2021, Disney Plus had 129.8 million paying customers worldwide, gaining 11.8 million for the quarter ended Jan. 1, 2022( smashing analysts’ expectation of net adds of 7.3 million for the period.)

For the full year 2021, Disney Plus’ subscriber base grew 37%, up from 94.9 million a year prior.

Thanks to prices increases, the average Disney+ customer is paying 15% more than they were a year ago if they live in the U.S.

The geographic breakdown of subs is as follows…

• India: 45.9 million subs

• U.S./Canada: 42.9 million subs

• International (save India): 41.4 million subs

However, the price of $6.68 is less than half of what the average Netflix and HBO Max customer pays (and the average price in India is just $1.03!)

 Hulu added 6.6 million subscribers to reach 45.3 million subs, and ESPN+ added 4.2 million subscribers to reach 21.3 million.

Disney CEO Bob Chapek just reaffirmed that Disney+ will reach at least 230 million total subscribers by 2024. It had 129.8 million subscribers as of the end of 2021.

Additionally, the company beat top- and bottom-line expectations, reporting revenue of $21.8 billion and net income of $1.1 billion, with earnings per share of $1.06 (Wall Street expectations were for revenue of $18.78 billion and EPS of $0.58).

“We’ve had a very strong start to the fiscal year, with a significant rise in earnings per share, record revenue and operating income at our domestic parks and resorts, the launch of a new franchise with Encanto, and a significant increase in total subscriptions across our streaming portfolio to 196.4 million, including 11.8 million Disney+ subscribers added in the first quarter,” said Bob Chapek, CEO of The Walt Disney Company, in a statement.

“This marks the final year of The Walt Disney Company’s first century, and performance like this coupled with our unmatched collection of assets and platforms, creative capabilities, and unique place in the culture give me great confidence we will continue to define entertainment for the next 100 years.”

The bottom line – for now – is, it appears Disney+ is eating Netflix’s lunch (at least until Boba Fett is over anyway).