Disney+ Adds Almost 8 Million New Subscribers

Disney added 7.9 million new subscribers to its Disney Plus streaming service during the first three months of 2022, the company announced (PDF) in its Q2 earnings report on Wednesday. The Verge reports: That brings the total to around 87.6 million worldwide, excluding the 50.1 million people subscribed to Disney Plus Hotstar internationally. In the US and Canada alone, Disney Plus now has 7.1 million more subscribers than it did a year ago, with 44.4 million. The company also said that the number of subscribers for all of its streaming offerings -- including Hulu and ESPN Plus -- had grown to over 205 million, an increase from the 196.4 million it reported in January. Disney also reports that it's earning more per Disney Plus subscriber than it had been previously, at least in the US. Where its average monthly revenue per paid subscriber used to be $6.01, it's now sitting at $6.32. Disney says this is thanks to "an increase in retail pricing and a lower mix of wholesale subscribers." Despite this, Disney Plus is actually losing the company money at a greater clip than it was before. Disney says this is thanks to higher costs for production, advertising, and technology. Those costs seem unlikely to go down, and raising prices, like Netflix did, could cut off its subscriber growth. All that put together makes it obvious why Disney is looking at creating an ad-supported tier sooner rather than later.

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