Disney to run adverts as it overtakes Netflix in…

Disney to run adverts as it overtakes Netflix in brutal race for subscribers

The mouse's gloves are off - as Disney has finally managed to overtake Netflix in the race for paid subscribers.

And just like its rival, the new frontrunner will also be launching a new ad-supported streaming service in the US later this year.

This will no doubt come as a bitter blow to Netflix, which has already shed 1.5 million customers this year - the first dip in sign-ups in a decade for the UK’s most popular paid-for streaming service.

Along with Amazon Prime Video, thousands cancelled their subscriptions in the wake of the cost-of-living crisis - yet Disney so far seems largely immune to the world’s troubles.

The firm reported a whopping 221.1 million subscribers across its three streaming platforms at the start of July, narrowly putting it ahead of Netflix.

However it isn’t all plane sailing for Disney, who warned its loss of streaming rights in India would slash its projected subscriber growth.

But demand remains strong for its content (see table below ), which includes streaming platform Hulu and sports-focused ESPN+.

Disney Plus grew exponentially in lockdown, but since Covid restrictions have lifted it has actually attracted fewer customers than analysts expected.

The company added 14.4 million Disney+ subscribers in the quarter, with many of them outside the US.

In December it will launch a new ad-funded service in America, still charged at the current $7.99 (£6.53), with the ad-free service rising to $10.99 (£8.98) each month.

Disney will be launching a new ad-supported streaming service in the US later this year. (Getty Images)

Plans to widen the ad-funded service next year

All being well, Disney aims to further widen the ad-funded service outside the states some time in 2023.

The streaming giant was confident the price rise wouldn’t shake-off any customers, with the platform seeing increasing interest from companies wanting to advertise with them.

Chief executive Bob Chapek told analysts: "We are in a position of strength with record upfront advertising commitment".

Paolo Pescatore, analyst at PP Foresight, hailed Disney’s success as a ‘pivotal moment in the streaming wars’, claiming Disney had more room to grow than its nemesis Netflix.

"[The results] firmly underline my belief that Disney is at a different phase of growth to Netflix," said Mr Pescatore. "There are still millions of users to acquire as it continues to expand into new markets and rolls out new blockbuster shows."