Disney subscriber growth blows past estimates, as company beats on top and bottom line

A performer dressed as Mickey Mouse entertains guests during the reopening of the Disneyland theme park in Anaheim, California, U.S., on Friday, April 30, 2021.

Rumors that the global streaming market is nearing saturation have been proven to be false.

According to StreetAccount, the total Disney+ subscriptions rose to 152.1 million during the third quarter of the fiscal year.

The company's shares were up after the bell.

In the past few weeks, the streaming space has been in turmoil, with Warner Bros. and Discovery announcing a shift in strategy. Uncertainty has left analysts and investors wondering what the future holds for the rest of the industry

The company unveiled a new pricing structure that includes an advertising supported Disney+ as part of an effort to make its streaming business profitable.

Disney+ lost over $1 billion in the third quarter due to the higher cost of content on the service. The revenue per user for Disney+ decreased in the US and Canada due to customers taking cheaper products.

The price of Disney+ with commercials will be $7.99 per month starting December 8 in the U.S. The price of ad-free Disney+ will increase by a third.

Increased spending at its domestic theme parks helped Disney post better-than- expected earnings.

The results can be found here.

• Earnings per share: $1.09 per share vs. 96 cents expected, according to a Refinitiv survey of analysts
• Revenue: $21.5 billions vs. $20.96 billion expected, according to Refinitiv
• Disney+ total subscriptions: 152.1 million vs 147.76 million expected, according to StreetAccount

Revenue in Disney's parks, experiences and products division increased to $7.4 billion during the quarter, up from $4.3 billion during the same period last year. There were increases in attendance, occupied room nights and cruise ship sailings.

The average per capita ticket revenue increased during the quarter, thanks to the new products. The new features allow park goers to skip lines at major attractions.

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