Disney+ (DIS) has gained momentum in the streaming fight — announcing this week that the platform topped 50 million subscribers worldwide since its launch last fall.
The new update helped boost Disney’s stock on Thursday, is more than double the 22 million subscribers the company reported two months ago.
For comparison, Netflix (NFLX) has 167 million global subscribers while Disney-owned Hulu has amassed over 30 million (the platform only operates in the United States).
CFRA Research Analyst Tuna Amobi told Yahoo Finance the better-than-expected results indicate just how “far ahead” Disney is today — outpacing even its own projections. The company had originally estimated 60-90 million global subscribers within the next five years.
Disney+ also seems to be resonating with the younger generation. According to Piper Sandler’s semi-annual teen survey, which polled over 5,200 teens nationwide, respondents said they spent an average 33% of their time watching Netflix, followed by Youtube and cable.
However, all three platforms saw their results dip slightly from the survey’s fall 2019 results — largely driven by the entrance of Disney+ and Apple TV+ — which has yet to release any official subscriber data.
Both services captured a portion of their competitor’s shares at 7% and 2%, respectively.
Both Disney+ and Apple TV+ offer their services at lower price points. And with newcomer HBO Max (T) entering the race in May, the competition for viewers’ eyeballs is fiercely heating up.
Still, Piper Sandler has maintained its outlook for Netflix, writing that the streaming service is a “leader in a category that contains massive multi-year growth potential as more content viewing shifts online.”
“There will be increasing competition and unforeseen hurdles, but we believe the market will support multiple large players, with Netflix leading the way,” the report continued.
Netflix nabbed over 59 million downloads in the first quarter of 2020 — the most out of any other service, according to mobile intelligence company Apptopia and customer engagement platform Braze.
— Yahoo Finance