The Walt Disney Company (NYSE:DIS) is attracting the attention of investors after it published fiscal 2022 third-quarter financial results in August. Disney’s report highlighted a significant achievement: the company now has more members than Netflix (NASDAQ:NFLX). When compared to Disney (NYSE:DIS), the streaming pioneer’s success is impressive.
Disney (NYSE:DIS) was unsure whether or not to enter the streaming market immediately. It was concerned that the new market might take customers away from its more lucrative cable TV operations. The company has just committed to streaming, and early results have encouraged investors. Let’s take a deeper look.
Disney Surpassed Netflix in total streaming subscribers.
The most current quarter ended on Jul. 2, and the House of Mouse gained 14.4 million subscribers to Disney over the previous quarter. Disney has 221 million subscribers over its three services (including Hulu and ESPN+). That put it ahead of Netflix, which as of Jun. 30, had 220.67 million customers, but only narrowly.
While this is good news for Disney (NYSE:DIS) stockholders, Netflix still has an edge in many other vital areas. Compared to Disney’s streaming segment’s $5 billion earnings in the most recent quarter, Netflix brought in $8 billion. Meanwhile, Disney lost $1.1 billion in operational money, while Netflix made $1.6 billion.
Data from these critical indicators show that, despite Disney’s (NYSE:DIS) impressive gains over Netflix, the company still has some way to go before it can catch up to the streaming industry leader.
On the conference call that followed the Aug. 10 results announcement, Disney’s (NYSE:DIS) management provided shareholders with an update on the company’s plans for its streaming business. Previous projections have projected that Disney+ would have between 230 and 260 million subscribers by 2024. The conference call reduced that range to 215-245 million. Fewer people signing up for its Hotstar service, which generates far less money per client than Disney+’s primary offering, blamed for the decline.
However, if Disney+ were to reach the objective of 230 million subscribers (the target’s midpoint), it would represent an increase of approximately 80 million subscribers from the 152 million subscribers it claimed to have as of Jul. 2. Disney is optimistic that it can draw millions of consumers to its service over the next several years thanks to its iconic properties such as Star Wars, Marvel, Pixar, and more.
Stock in Disney can still be purchased.
The stock of Walt Disney Company (NYSE:DIS) is a household name, so it’s no wonder that investors are talking about it. Compared to its primary competitor Netflix, which lost 970,000 customers during the quarter, the firm added 14.4 million. Disney’s share price has risen by 14% in several days. Investors can still benefit from adding Disney shares to their holdings.
Featured Image : Megapixl © Ryansimo77
Author Shariq Khan 
