With aggressive pricing and innovative features, Disney+ launched on November, 12th. The iconic entertainment company has launched a similar service to Netflix and Amazon Prime Video, aiming to conquer current subscribers of existing streaming services.
On its first day, Disney+ reached 10 million subscribers, reported the company. It forecasted more than 18 million total for November 2021. As a result, Disney shares went up 3.5% on November 12th, the day of the launch.
With a monthly rate of $6.99, Disney positioning might severely hinder Netflix business, which has 60 million subscribers in the United States and 158 million in the world.
A brilliant launch day for Disney+
Disney has surpassed all investors expectations: within a day, more than ten million Americans subscribed to the new online streaming service. For $6.99 per month, users will be able to watch videos on demand – a more expensive offer includes a bundle with Hulu and TV sports channel EPSN for $13.
— The Verge (@verge) November 13, 2019
As a result, Disney stock increased to $150 a share and closed at $148.72 on Wednesday, November 12th. It traded five times its normal volume. On the other hand, its main competitor, Netflix, is facing issues on the market. Its share dropped 3% to $283.11.
At the end of the first day, analysts reckoned a “very strong start”, such as Cowen & Co.’ s Doug Creutz shared to the entertainment media Deadline.
Read on Alvexo: “Netflix is the United States’ Most Popular Television Service”
90 million subscribers for 2024
Not only Disney+ has managed to attract more than ten million subscribers on its first day, but the American giant entertainer is aiming for nine times its client base within four years.
Disney has forecast that Disney+ will have 60 million to 90 million subscribers by the end of 2024. Today’s Disney release also stated that “moving forward,” the company has no plans to release Disney+ subscriber data outside of The Walt Disney Company’s quarterly earnings calls.
— Melissa Alvarado (@malvara8) November 14, 2019
Its aggressive strategy seems to have succeeded: with a lower price than Netflix. Its monthly fee is about two dollars cheaper per month and a special partnership with Verizon managed to increase the first-day clients – unlimited Verizon customers have received free access to Disney+ for a whole year.
As Netflix is currently counting 60 million subscribers in the United States and 158 million in the world, Disney+ is aiming to count 90 million customers globally by 2024.
A few tech glitches
However, the first day of the Disney+ was marked by a few technological glitches. Several providers did not deliver the platform and thousands of users saw their screen frozen – probably because of a high traffic that crashed the streaming platform.
— Reuters TV (@ReutersTV) November 12, 2019
As technical glitches have to be fixed, Disney+ will have to prepare ahead of upcoming competition, as Warner Media and NBC Universal have announced they will also launched their own streaming service, HBO Max and Peacock, early next spring.