Disney+ soars to 26.5M subscribers, topping estimates

05 Février, 2020, 04:43 | Auteur: Christine Menetries
  • A scene from The Mandalorian with the character dubbed Baby Yoda

The direct-to-consumer and worldwide segment, which houses Disney+, reported an operating loss of $693 million, compared with an operating loss of $136 million a year earlier.

The movie studio segment reported an operating income of $948 million, up from $309 million a year earlier.

"I am enormously proud of what we have accomplished in a relatively short period of time", Iger said on a call with investors.

Iger added that the company is working on plan to expand Hulu internationally in 2021 but at the moment, Disney Plus is a "priority".

Disney Plus' "Star Wars" original spinoff series "The Mandalorian" is returning for Season 2 in October, said Disney chief Bob Iger on the company's earnings call Tuesday.

The services continue to benefit from a US$13-a-month offer from Disney that includes all three products.

Disney+ ran promotions for discounted service for multiple years, marking the service down to the equivalent of $3.99, and has provided free Disney+ access to Verizon subscribers.

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Overall revenue rose 36% to $20.86 billion, beating estimate of $20.79 billion according to IBES data from Refinitiv.

The drop in profit reflects costs from the company's US$71 billion purchase of Fox's entertainment assets previous year, as well as the ongoing investment in movies and TV shows for streaming.

Analysts expected that the service would bring in 20 million to 25 million subscribers this quarter.

The company's shares rose 1.3% to $146.72 in trading after the bell.

Fox's film unit, which has had a string of duds, lost $50 million, and Iger warned that Disney's 2020 film slate won't match the record set in 2019 for the studio. The company has closed its US$5.5 billion Shanghai resort and said its Hong Kong park will also close due to the outbreak.

That's an impressive start for what Disney has positioned as its future as more people drop cable subscriptions.

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