Disney + has once again overperformed analysts expectations by adding millions more new subscribers than expected.
For the quarter ending April 2, Disney reported 7.9 million new Disney+ subscribers, to hit 137.7 million subscribers, up from 129.8 million in the prior quarter.
Wall Street analysts had predicted the company would add 5.2 million new subs.
CEO Bob Chapek has called Disney’s aim of reaching between 230 million and 260 million subscribers by September 2024 “very achievable”.
“Our strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services—with 7.9 million Disney+ subscribers added in the quarter and total subscriptions across all our DTC offerings exceeding 205 million—once again proved that we are in a league of our own,” Chapek said.
“As we look ahead to Disney’s second century, I am confident we will continue to transform entertainment by combining extraordinary storytelling with innovative technology to create an even larger, more connected, and magical Disney universe for families and fans around the world.”
Interestingly, Indian Premier League was a huge driver of subs this quarter, with CFO Christine McCarthy revealing half of the 7.9 million new subs came from subscribers to Disney+ Hotstar, which holds the IPL rights.
Hotstar subs alone account for around 50 million Disney+ customers, but are worth a lot less, financially speaking.
A paying Hotstar subscriber pays an average monthly revenue of just 76 cents, while a US Disney+ subscriber is worth an average of US$6.32 a month.
Disney only has one more year left on its IPL rights, and is currently battling other competitors to renew these rights.
Wall Street Journal pundits predict bids will come in above US$5 billion for the five-year rights.
Considering how many cricket-mad subscribers hinge on the IPL, Disney will no doubt pay whatever it takes to retain those rights.