Disney is having one of the greatest starts of its year as it releases a stellar report of it's Q1 2021 earnings. The report showed revenue beating expectations by $350M to $16.25B as its streaming service massively gained new subscribers. Currently, the Disney+ streaming service sees a subscriber count of 94.9 million which is nearing its 230 million to 260 million goal in the next three years.
The popular entertainment conglomerate, The Walt Disney Company, has revealed that it's revenue has grown by a massive $350 million more than expected from its forecast of $15.9 billion. Moreover, the company and current CEO Bob Chapek says that the COVID-19 vaccination would be the game-changer for the reopening of the theme parks.
It is early February and even though the first quarter of 2021 is not yet over, Disney is enthusiastic to share its first observations of the year which is mostly positive and a gain for the company.
Disney Q1 2021 Earnings
The more than expected revenue report is a massive win for the company despite other sources of revenue currently shut down amid the pandemic.
Disney attributes their success mostly to the young streaming service of the company, Disney+, which would have its first anniversary by March this year. The demand for Disney, Marvel, and Star Wars movies and shows has paid well as the streaming service has contributed to the growth of the company.
Moreover, the streaming service contributed to the growth of the company by 1.7 percent in its stocks after hours, an aspect of the company's shares that is also worth mentioning. On the other hand, its parks have seen a massive downfall of 53 percent, down to $3.58 billion at the time of their report, due to the COVID-19 pandemic.
However, CEO Bob Chapek said that this was due to the pandemic's restrictions which forced some parks to close down or operate at a limited capacity to accommodate several customers and continue their functions.
Disney+ Subscriber Count Up to 94.9M
Disney largely attributes their revenue to its streaming service's success in the past year that is currently at 94.9 million subscribers that jumped from several million during the start of 2020. The numbers are impressive considering that Disney+ was released only last March 2020, and already sees a good track.
According to CNBC, the company retained users that have ended its free Verizon subscription that is now paying for the service. Moreover, Disney expects this to grow up to 260 million subscribers in 2024.
Related Article: Disney+ Subscription Service Price Increase: $8 Monthly in March 2021 without the 1 Week Free Trial-Still Cheaper than Netflix!
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Written by Isaiah Alonzo
