The launch of Walt Disney’s (NYSE:DIS) streaming service Disney Plus was one of the biggest events in the entertainment world last year. However, it was also a seismic event in the streaming space as it finally signaled the entry of a service that was built for challenging the hegemony enjoyed by Netflix Inc (NASDAQ:NFLX).
Disney released its financial results for the first fiscal quarter of 2020, and according to experts, the company’s streaming business is in the pink of health. The subscriber numbers proved to be much higher than analysts’ estimates, and it was no surprise that Disney Plus proved to be the main point of focus this at a time around.
Solid Quarterly Earnings
Disney Plus had already garnered as many as 10 million subscriptions after the first week of the launch back in November 2019, and Disney Chief Executive Officer Bob Iger said that its performance went beyond all expectations. The company revealed that by the end of the first fiscal quarter, the number of subscribers stood at 26.5 million, and in 2020, Disney Plus added 2.1 million more subscribers. More importantly, Disney stated that the conversion of customers from free trial sign-ups to paying subscribers had taken place at a better rate than expected.
Strong Monetization Strategy
In addition to that, it is also important to add that Disney had adopted a strong monetization strategy with regards to its streaming business. After the acquisition of 20th Century Fox, Disney became the owner of Hulu, which is another streaming platform. When one adds to the recent launches of Disney + as well as ESPN+ then, then it makes for a compelling streaming business.
In other words, Disney has become a multi-faceted video streaming giant in the blink of an eye, and the three services combined now have 63.5 million subscribers. It is not really a surprise that the management of Disney is quite excited about the future of its streaming business.