'Predicted OTT Powerhouse' Disney+ Rapid Growth... 28.6 Million Subscribers in 3 Months

Full-Scale Overseas Expansion This Year, Intense Competition at Home Too

[Asia Economy Reporter Seulgina Jo] Disney Plus, the 'giant OTT' that entered the global online video service (OTT) market led by Netflix as a latecomer, continues its rapid growth by securing 28.6 million subscribers in five countries just over three months after its launch. This year, with its overseas expansion also kicking off in earnest, a fierce competition is expected. As the market landscape itself is anticipated to change depending on who partners with Disney Plus, the related industries in Korea are also engaged in intense strategic maneuvering.

According to Business Insider and others on the 4th (local time), Bob Iger, Disney's CEO, said during a conference call held immediately after Disney's Q1 (U.S. basis) earnings announcement the previous day, "Since the launch of Disney Plus last November, we have achieved results that exceeded expectations," adding, "As of the end of December, we had 26.5 million subscribers, and as of yesterday, 28.6 million subscribers." This figure far exceeds market expectations (20 million). The countries where Disney Plus currently provides services are limited to the United States, Canada, Australia, New Zealand, and the Netherlands.

This success is attributed to the content Disney Plus has introduced, such as the exclusive release of the Star Wars spin-off drama 'The Mandalorian.' Backed by popular content like Frozen, Aladdin, and Avengers, Disney Plus surpassed 10 million subscribers in three countries within just one day of its launch. Originally targeting 60 to 90 million subscribers by 2024, Disney is expected to revise its forecast upward soon. The average monthly revenue per paid subscriber in Q1 was recorded at $5.56.

This growth trend is inevitably putting pressure on Netflix and others who have dominated the OTT market so far. Major foreign media have analyzed that Disney Plus accounts for a significant portion of Netflix's U.S. subscriber base in just three months. According to Netflix's earnings report released last month, the global subscriber count is 167 million, with about 60 million subscribers in the U.S.

Business Insider reported, "Netflix's paid subscriber count in the U.S. last quarter fell short of market expectations," attributing this to "the impact of Disney Plus." Although Netflix currently leads the streaming market, many analyses suggest it will be difficult to withstand Disney's offensive, given its century-long history of content production.

Apple Plus, considered another competitor, launched its service just weeks apart from Disney Plus in November last year, but its subscriber numbers have not been disclosed. IT media outlet The Verge evaluated, "Apple CEO Tim Cook expressed satisfaction to investors about 'Apple Plus's strong start,' but it does not seem comparable to Disney Plus's performance."

Disney Plus will start additional services on March 24 in some European countries centered on Western Europe, including the United Kingdom, France, Germany, and Italy. On March 29, it is scheduled to launch in India. In the second half of the year, it plans to expand into Northern Europe, Eastern Europe, and South America. South Korea is not yet on the list of planned launch countries. However, related industries in Korea anticipate that entry could be possible within this year at the earliest.

The arrival of Disney Plus is expected to be a turning point that will not only expand the domestic OTT market but also intensify content competition. An industry insider explained, "If a partnership is formed with Disney Plus, it would be possible to dominate the domestic market at once and also expect overseas expansion," adding, "Now, the key to holding the OTT market's hegemony is content." The indirect impact on related industries such as telecommunications cannot be ignored. Disney Plus is currently partnering with telecom companies in the U.S. to offer free service periods to telecom subscribers.

This content was produced with the assistance of AI translation services.