Disney+ Gains 1.4 Million Subscribers with Aggressive SVoD Investment Outside the US

Disney+ reached 126 million subscribers globally in the second quarter, adding 1.4 million new members. This growth contributed to a 9% increase in revenue for Disney’s entertainment segment, totaling US $10.68 billion. Within this segment, direct-to-consumer revenue rose by 8% to US $6.12 billion, while linear network revenue fell by 13% to US $2.42 billion. Content sales and licensing revenue saw a significant increase of 54%, reaching US $2.14 billion.
The surge in direct-to-consumer revenue was supported by subscriber growth and price adjustments. Of the 1.4 million new Disney+ subscribers, one million were from the US and Canada, with the remaining 400,000 coming from outside North America. Hulu also experienced growth, gaining 1.1 million subscribers to reach 54.7 million in total.
Disney CEO Bob Iger announced a more aggressive investment strategy for content in certain international markets. While specific regions were not mentioned, the increased investment will be focused on select countries.
This shift comes after Disney scaled back its international content spending in recent years, prioritizing profitability over subscriber growth. The company now plans to concentrate on specific markets outside the US, with a renewed focus on content development.
Following the release of its Q2 earnings, Disney stock saw a 10% increase, reaching US $102 per share. Bob Iger’s emphasis on international content investment has instilled confidence in the company’s future growth.