Subs Growth Slows at Disney+

Disney+ ended Q4 with 118.1 million subscribers, adding 2.1 million customers in the period, with overall direct-to-consumer revenues up 38 percent.

The Walt Disney Company reported total revenues of $18.5 billion in Q4, a 26 percent gain, delivering a net profit of $160 million, as compared with the year-ago loss of $710 million.

“This has been a very productive year for The Walt Disney Company, as we’ve made great strides in reopening our businesses while taking meaningful and innovative steps in direct-to-consumer and at our parks, particularly with our popular new Disney Genie and Magic Key offerings,” said Bob Chapek, CEO. “As we celebrate the two-year anniversary of Disney+, we’re extremely pleased with the success of our streaming business, with 179 million total subscriptions across our DTC portfolio at the end of fiscal 2021 and 60 percent subscriber growth year-over-year for Disney+. We continue to manage our DTC business for the long-term and are confident that our high-quality entertainment and expansion into additional markets worldwide will enable us to further grow our streaming platforms globally.”

At Disney Media and Entertainment Distribution, revenues rose 9 percent to $13.1 billion, with operating income down 39 percent to $947 million. The linear networks brought in $6.7 billion in revenues, a 4 percent reduction, with a 5 percent fall at the domestic channels to $5.4 billion and a 3 percent decline at the international channels to $1.3 billion. Direct-to-consumer revenues were up 38 percent to $4.6 billion. Disney+, with 118.1 million customers, saw ARPU decline by 9 percent to $4.12. ESPN+, at 17.1 million subs, improved its ARPU by 4 percent to $4.74. Hulu subs grew to 43.8 million (SVOD and live TV+SVOD). Content sales and licensing revenues were up 9 percent to $2 billion but the segment delivered an operating loss of $65 million due to lower theatrical and TV/SVOD distribution results.

Disney Parks & Experiences delivered revenues of $5.45 billion, almost double the year-ago quarter.