San Francisco (AFP) - US entertainment giant Disney on Wednesday beat expectations for new subscribers to its flagship streaming service, even with an easing of pandemic restrictions that favored its growth and despite fierce competition from Netflix.
Disney+ reached 129.8 million subscribers worldwide, millions more than analysts had predicted, resulting in a boost that saw the company's share price jump in after-market trades.
"Our unmatched collection of assets and platforms, creative capabilities, and unique place in the culture give me great confidence we will continue to define entertainment for the next 100 years," Walt Disney Company CEO Bob Chapek said in an earnings statement.
Disney+ subscriber numbers boomed under the lockdown lifestyles of the pandemic, becoming ever larger in the rearview mirror of streaming giant Netflix, but the platforms' fortunes have diverged somewhat since.
Netflix ended the year with 221.8 million subscribers, a massive number, but it announced slowing growth that drew immediate market punishment -- leaving its shares about 20 percent lower in recent weeks.
Things are not looking better for the first quarter of 2022, with the Netflix earnings report saying the firm expected to only add some 2.5 million subscribers.
The last first-quarter expectation under 2.5 million subscribers came in 2010, when Netflix had a mere 13.9 million customers.
Most of the 8.3 million subscriptions added at the end of last year came from outside North America, according to the streaming service.
On top of Disney+ subscriber figures, the entertainment giant reported profit that topped forecasts on revenue that surged to $21.8 billion in the final three months of 2021.
Disney's results, across its entertainment empire, pushed its share price up about eight percent in after-hour trading.
Analysts pointed to Disney brand power as helping its streaming platform's growth.
"These results speak volumes for Disney's storied brands and its ability to rise above the competition in an increasingly crowded digital media market," wrote Insider Intelligence analyst Paul Verna.
Disney+ saw higher programming and production, marketing and technology costs, partially offset by an increase in its subscription revenue.
Higher subscription revenue was due to growth and increases in retail pricing, while increases in costs and subscribers reflected growth in existing markets and to a lesser extent, expansion to new markets.
