EntertainmentStreamingDisney Plus is winning its war on Netflix – and it’s due to this tacticWhile Netflix sheds subscribers, Disney Plus is adding millionsWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
EntertainmentStreamingDisney Plus is winning its war on Netflix – and it’s due to this tacticWhile Netflix sheds subscribers, Disney Plus is adding millionsWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
While Netflix sheds subscribers, Disney Plus is adding millions
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
(Image credit: Disney Plus)
(Image credit: Disney Plus)
WhileNetflixis losing hundreds of thousands of subscribers,Disney Plusis on a roll: in the first three months of 2022 it added 7.9 million new subscribers, bringing its total customer base to 87.6 million or nearly 150 million if you include its collaboration with Star and Hotstar in India. And when you factor in otherDisneystreamers such as Hulu and ESPN Plus the number soars to well over 200 million.
The secret? Money, and lots of it. Disney Plus is spending big and losing an absolute ton of money as it builds its streaming business. While the average monthly revenue per user is up from $6.01 to $6.32, Disney+ is spending much more than it’s bringing in. You could call it theAmazonstrategy: spend big to get customers now and worry about making a profit later.
AsThe Vergepoints out, one of the biggest expenses this year has been the billion-dollar buyout of a content provider’s contract so its movies and shows could come to Disney+ early. Disney doesn’t name that provider, but the smart money says it begins with M and rhymes with Rarvel.
(Image credit: Disney Plus)
(Image credit: Disney Plus)
Why is Disney Plus winning when Netflix is struggling?
The short answer? Disney isn’t upping its prices while cancelling high profile shows. TheNetflix standard planis currently $15.49 / £10.99 / AU$16.99 per month, and if you want the 4K plan you’ll pay even more. Disney+ is around 30% cheaper and doesn’t charge extra for the highest quality streams, and in addition to its massive library of existing content – from Star Wars to The Simpsons with Marvel and Pixar there too – it’s investing in new shows such as The Mandalorian andObi-Wan Kenobi. As ourDisney+ Guideexplains, there’s a lot of great content on the service and lots more to come.
Price is definitely a factor, especially in the UK where there’s a cost of living crisis. ButNetflix’s biggest problem isn’t money; it’s that the market is very different from when Netflix was the streaming superstar, its only real rivalAmazon Prime Video. The landscape is crowded now, with offerings not just from Disney+ but from all kinds of major broadcasters and the likes of Apple too – and that means Netflix isn’t just competing with rivals for subscribers, but to get the rights for hit shows and movies too.
Netflix isn’t in trouble, although its meteoric growth is clearly over for the foreseeable future. But as it mulls introducing ads and cracking down on password sharing it could be playing a risky game: making its product less attractive at a time when many of us are wondering whether we can justify having multiple streaming subscriptions and giants like Disney+ are happy to spend, spend, spend.
Today’s best Disney Plus dealsDisney+ Annual Premium$139.99/yearViewatDisney+
Today’s best Disney Plus dealsDisney+ Annual Premium$139.99/yearViewatDisney+
Today’s best Disney Plus dealsDisney+ Annual Premium$139.99/yearViewatDisney+
Today’s best Disney Plus deals
Disney+ Annual Premium$139.99/yearViewatDisney+
Disney+ Annual Premium$139.99/yearViewatDisney+
Disney+ Annual Premium$139.99/yearViewatDisney+
Disney+ Annual Premium
Disney+ Annual Premium
$139.99/yearView
$139.99/year
$139.99/year
/year
atDisney+
atDisney+
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