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Disney CEO Says Childless Households Boosted Streaming Success

LOS ANGELES (Reuters) – Surprisingly strong interest from adults who do not have children at home has helped increase subscriptions to Walt Disney Co’s Disney + streaming service beyond initial forecasts, said Monday. Managing Director Bob Chapek.

Disney + debuted in November 2019, and growth has exceeded Wall Street expectations and Disney forecasts. While Disney is known for family entertainment, Disney + also offers movies and TV shows from Marvel, “Star Wars” studio Lucasfilm, and others.

As of January 2, Disney + had registered 94.9 million customers worldwide. Half of these live in households without children, Chapek said, a higher proportion than expected.

“What we didn’t realize was the non-family appeal that a service like Disney + would have,” Chapek said via an online video at the Morgan Stanley Technology, Media and Telecommunications Conference. .

“In fact, over 50% of our global market does not have children,” he added. “When 50% of the people at Disney + don’t have children, you really have the opportunity now to think much more broadly about the nature of your content.”

The service has generated buzz for the current Marvel show “WandaVision” and the “Star Wars” series “The Mandalorian” featuring the character known as Baby Yoda.

Chapek, who became CEO of Disney a year ago, has refocused Disney’s media and entertainment business to make streaming a priority as customers turn to options like Netflix Inc.

In December, Disney raised initial projections and said it plans to attract up to 350 million subscribers worldwide on all of its streaming services, which include Hulu and ESPN +, by the end of this month. fiscal year 2024.

(Reporting by Lisa Richwine; Editing by Sonya Hepinstall)

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