Disney Gains Subscribers For Hulu and Disney Plus In Second Quarter
It likely is due to the massive deal the company offered on the services in March.
Disney’s stocks have gone up after they announced that Disney+ and Hulu gained subscribers. Many were concerned that those numbers would drop in Q2.
Disney+ gained 1.4 million subscribers, and Hulu gained 1.1 million subscribers during the quarter.
How did Disney pull it off?
Disney likely increased their subscriber numbers because it offered a 70% off deal for customers wanting to use the advertising-supported Disney+ Hulu bundle.
In March, Disney offered this ridiculously good deal on the bundle. The deal only lasted until March 30, the end of the quarter.
Since March is the last month of the quarter, Disney likely saw that subscriber numbers were not looking so great, and they offered the $3 deal.
That’s right. The deal was $2.99 a month for four months, which would take those numbers through the end of Q2 and all of Q3.
The downside
Disney grew subscribers, but those new sign-ups come in at $2.99 a month, down from the normal bundle price of $10.99. After the four months end, the price goes back up to the full amount.
Disney is losing $7 per month or $28 per subscriber that signed up for the deal. This will add up to a lot of lost revenue. However, one could argue they gained $3 a month or $12 for four months on people who would not have normally signed up.
At the end of the day, Disney offers these deals to boost numbers for the quarter. If a deal randomly appears, you can be relatively sure that the numbers must be down. It’s all a shell game to increase the numbers for investors.
The upside
Since Disney does this to boost numbers, you might be able to score a great deal on Disney+ in March, June, September, and November-December.
This could save you some money on the service.
Of course, it worked as Disney planned, and their stock prices jumped up, finally going back over $100.
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