Disney said it ended its fiscal year with more than 235 million subscribers to its streaming services. That’s above analysts’ expectations of 231.5 million.
The company plans to increase prices at Disney+ next month and also introduce a lower-priced version that includes advertisements. Currently, Disney+ is ad-free.
Disney+ added 12.1 million subscribers to bring the total 164.2 million as of Oct. 1. In comparison, Netflix — which is also adding an ad-supported tier to its streaming service — has about 223 million subscribers.
CEO Bob Chapek said the company still expects Disney+ to be profitable in 2024 “assuming we don not see a meaningful shift in the economic climate.”
Shares in Disney, which is based in Burbank, California, fell almost 8% in after-hours trading.