The stock price of Disney just jumped 5% after it reported its Q3 22 earnings!
There have been plenty of headlines in mainstream media and fintwit that say Disney+ has overtaken Netflix in just 2.5 years.
But has it?
Subscribers that are paying peanuts
May I bring your attention to the Average Monthly Revenue Per Paid Subscriber for Disney+ Hotstar
It is a grand total of…
$1.20
And Disney+ Hotstar accounts for 58.4m out of 152.1m Disney+ subscribers.
For comparison, here is the price of a packet of peanuts:
Okay for real, here is Netflix average monthly revenue in Asia Pacific at $8.83 per month:
Overinflated subscribers count?
Disney with some fancy subscribers count.
Households who subscribe to the bundle offerings are counted as 3 unique subscribers?
And mind you, these bundle offerings are heavily discounted.
One bundle offering is only $13.99! And this counts for 3 subscribers.
For Netflix, the Standard plan is $15.49 and it also counts as 1 subscriber.
Don’t compare Apple to Oranges
This is not to say that Disney is a bad company or inferior when compared to Netflix.
Investors must always look under the hood.
In this case, Disney+ results aren’t as stellar as what mainstream media and fintwit influencers are touting.
Hot takes like these capture attention, but they’re not good for your investing health:
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