Netflix lost 200k subs last quarter and says it’s gonna lose 2m more in Q2.
Disney, despite admitting that growth could slow, just added 7.9m subs and projects to have 230m-260m by 2024.
Disney’s ARPU (pronounced “our poo” and standing for “average revenue per user”) frankly looks like poo next to Netflix’s, at $6.32 vs. $14.91 in the US.
You also have to consider that 50m+ Disney+ subs live in India, where they pay $0.76/mo. on average.
Netflix still holds streaming’s crown, but its tech company “it” factor is no longer a marked differentiator, and it’ll have to solve for growth in ways other than game shows about whether something is cake.
As for Disney, striving for profits while spending on growth is a noble task, especially when investors care about streaming profits more than ever.
The good news: The new Doctor Strange movie passed $688m+ in box office sales, amusement park visitors are spending 40% more than in 2019, and a $500m ride is about to open in Disney World.
And those are areas where Netflix simply can’t compete.