Shares of Walt Disney Co. stepped higher on Thursday’s pre-market trading session after posting better-than-expected subscriber growth.
The American entertainment conglomerate added 3.98% or 4.30 points to $120.80 per share. The upturn followed an increase of 3.98% on Wednesday.
Walt Disney reported that total Disney+ subscriptions increased to 152.10 million during the fiscal third quarter. This latest report came in higher than the average analysts’ estimate of 147.00 million.
Then, the television network Hulu had 46.20 million subscribers, and ESPN+ posted 22.80 million. Thus, all three platforms have over 221.00 million streaming users.
Correspondingly, Walt Disney’s results have proven that the global streaming market nears saturation. The sector has been in a state of upheaval in recent weeks.
This uncertainty came after Netflix, the long leader in space, had only 220.00 million, disclosing another drop. At the same time, Warner Bros. Discovery announced a shift in content strategy. This report has left the investing community wondering what the future holds for the wider industry.
Moreover, Walt Disney unveiled a new pricing structure incorporating an advertising-supported offer. This move indicated an effort to make its streaming business profitable.
Walt Disney beats on top and bottom lines
In addition, Walt Disney published a revenue of $21.50 billion, surpassing the projected $21.00 billion. Likewise, the firm’s adjusted earnings grew $1.09, above Wall Street’s $0.96 estimate.
Subsequently, parks, experience, and consumer products revenue pinned at $7.39 billion versus the $6.65 billion expected. Then, the operating income for the segment hit $2.190 billion, representing a year-over-year increase of above 100.00%.
However, experts have cautioned that a worsening economy could spell trouble for the parks business in the coming quarters.
Meanwhile, Disney unveiled a price hike to its current ad-free streaming plan by 38.00% to $10.99 a month. This move will add $3.00 from the current $7.99 offer. Similarly, the price of Hulu’s ad-free service will jump from $2.00 monthly to $14.99 starting in October.
