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Disney makes up ground on Netflix, blowout Disney+ subscriber adds


Bob Chapek CEO Walt Disney

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The Streaming Wars are heating up — at least between Disney and Netflix.

DisneyStreetAccount reports that Disney+ subscriber numbers rose to 11.8million in the first quarter of fiscal 2012. This is more than 7 million higher than an average analyst estimate.

Shares shot up by 8% during extended trading as investors felt at least temporarily more confident about the industry’s health after Netflix predicted a slowdown in growth.

Bob Chapek, Disney’s Chief Executive Officer, reiterated the company’s goal of reaching between 230 million and 260 million Disney+ customers by 2024. Disney currently has 129.8 millions Disney+ subscribers around the world, and that includes India’s Disney+ Hotstar which is responsible for 45.9million.

Chapek: “That has been our goal, and that remains our target.” told CNBC.He said that Disney+ will now have more owned content than 2021, with Disney+ having twice as much Disney+ content.

Netflix was admitted last month by Disney, and Disney’s subscribers grew faster than Netflix in the three previous months. competition may be eating into its user base.

Netflix added 8.3 million new subscribersLast quarter brought its total global to 222 millions. Netflix shares fell more than 20%The company stated that it expected only 2.5 million subscribers to sign up for its first quarter. This is far below analyst expectations.

After the $1 price increase in March, Disney+ saw an average of $6.68 per user monthly in Canada and the U.S., which is 15% more than a year ago. Hotstar had an ARPU of $1.03 which is 5% higher than a year ago.

Netflix ARPU in Canada and the U.S. was $14.78 last quarter.

WATCH: CNBC’s full interview with Disney CEO Bob Chapek