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Disney+ Reaches 94.9 Million Subscribers, Average Revenue Per User Drops

Disney+ continues to be a juggernaut of streaming, surpassing 94.9 million subscribers as of December 31. ESPN+ has reached 12.1 million subscribers, almost doubling from a year ago, and Hulu reached 39.4 million subscribers.

The Walt Disney Company has shifted focus to streaming, especially amid the COVID-19 pandemic, with tons of new projects announced for Disney+ at last year’s Investor Day. That being said, the average revenue per user (ARPU) for Disney+ dropped 28% in the past year.

When Disney+ launched in 2019, its ARPU was $5.56. But with the free or low-cost inclusion of Disney+ for existing Hotstar subscribers, the ARPU has dropped.

Hotstar, a South Asian streaming platform, came under Disney’s control during the acquisition of 21st Century Fox in 2019. It has been integral in increasing the global reach of Disney+. In one bundle, Hotstar users get Disney+ for less than $2/month. Up to one-third of Disney+ subscribers are through Hotstar.

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The ARPU drop is one reason why Disney+ is increasing monthly prices next month.

The Walt Disney Company expects Disney+ to reach between 230 and 260 million subscribers in 2024, and 300 to 350 million subscribers across all three of its main streaming services.

Source: Deadline

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