This round, Disney beat Netflix.
Disney’s continued growth, juxtaposed with a disappointing quarter for Netflix, was the big story of this quarter’s earnings season.
Disney benefited from a handful of popular movies, including “Cruella” and “Luca,” that it placed directly on its Disney+ service in the quarter ended June 30, while Netflix is banking on a return to growth next quarter, when hit originals such as “Sex Education” and “Money Heist” return to the service.
Disney+ and Hotstar, Disney’s Indian streaming service, added 12.4 million new subscribers since last quarter, while Netflix added just 1 million new customers. Last quarter, Disney added almost 9 million new Disney+ subscribers and Netflix added about 4 million new customers.
“Last quarter, we had a little bit of weakness in streaming subs both at Netflix and Disney. The weakness continued for Netflix, but it didn’t for Disney,” Mark Zgutowicz, an analyst at Rosenblatt Equity Research, said in a CNBC interview. “Disney+ is about 90 million subs behind Netflix globally now. With this number today, it’s tracking toward a 20 million net add gain on Netflix this year.”