The streaming television race is heating up, with Disney showing Wednesday it is closing the gap with market leader Netflix, whose stride has slowed.
The US entertainment giant blew past expectations for new subscribers to its flagship streaming service Disney+, whose big studio muscle helped it reach 129.8 million subscribers worldwide, some five million more than analysts had predicted.
Netflix ended the year with 221.8 million subscribers, a massive number, but it announced slowing growth.
“We certainly understand the pie is big enough for both companies to succeed,” CFRA analyst Tuna Amobi said of the streaming rivals.
“What is undeniable is the competition has gotten more intense.”
Netflix and Disney+ both saw numbers boom under the lockdown lifestyles brought about by the pandemic.
Disney, the Hollywood entertainment behemoth that turns 100 next year, saw streaming subscriptions pick up pace as pandemic restrictions ease, while Netflix saw them slow.
“Our unmatched collection of assets and platforms, creative capabilities, and unique place in the culture give me great confidence we will continue to define entertainment for the next 100 years,” Walt Disney Company CEO Bob Chapek said in an earnings statement.
The company, with an empire that stretches from movies to theme parks and also includes streamers Hulu and ESPN+, reported profit that topped forecasts on revenue which surged to $21.8 billion in the final three months of 2021.
Disney has a huge pipeline of content and…
