Disney Corporation (NYSE:DIS) CEO Bob Chapek said that the continued growth of the company’s subscription video-on-demand service was not the result of any one item.
What Happened: Chapek attributed the success of Disney+ to a “combination of organic growth and powerful new content.”
Chapek, speaking at the company’s first-quarter earnings call, also credited a strategic decision — the inclusion of the Disney bundle with all Hulu Live subscriptions — to Disney adding 11.8 million subscribers to Disney+.
The Disney CEO also attributed the success of the streaming arm to new market launches.
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Why It Matters: Chapek said Disney is confident in its guidance of 230 million to 260 million total paid Disney+ subscribers by the end of fiscal 2024.
On Wednesday, Disney said it ended the first quarter with a total of 129.8 million subscribers for Disney+, a growth of 37% year-over-year. Earnings per share in Q1 came in at $1.06, which beat estimates of $0.61.
Disney rival Netflix Inc (NASDAQ:NFLX) ended its fourth quarter with 222 million paid memberships and added 8.3 million subscribers in the period.
“We are pleased with Disney+ subscriber growth in the quarter and are looking forward to new market launches and a strong content slate later this year,” said Disney’s CFO Christine McCarthy, at the earnings call.
In January, the Burbank, California-based entertainment giant said it will launch Disney+ in new markets such as South Africa, Turkey, and Poland.
In the same month, it announced the formation of the International Content Group led by Rebecca Campbell.
Chapek said on the formation of the group at the earnings call, “We just created a new organization within our company to shepherd the development of that content so that we can maximize the chance that we get some global hits.”
Price Action: On Wednesday, Disney shares spiked 6.6% higher to $157.01 in the after-hours trading. The shares rose 3.3% to $147.33 in the regular session.
Photo: Courtesy of Disney
