Walt Disney Company released his results for the third quarter of fiscal 2022, which ended July 2, after US stocks opened on Wednesday, Aug. 10.

The financial report showsWalt Disney Company's revenue from theme parks, experience and products reached $7.394 billion in the quarter, up 70 per cent from a year earlier.

At the end of the reporting period, Walt Disney Company added 14.4 million Disney+ subscribers, exceeding market expectations of 10 million. According to the financial report, the cumulative number of Disney+ subscribers in the current quarter of Walt Disney Company reached 152.1 million, higher than the market expectation of 148 million, plus Hulu and ESPN+, Walt Disney Company said that by the end of the quarter, they had 221.1 million streaming subscribers, higher than Netflix's 220.7 million streaming subscribers.

In the financial report, Walt Disney Company announced that he would increase the subscription price of Disney+ from December this year.

Compared with the "report card" handed over by Netflix Inc not long ago, Walt Disney Company's streaming business performance is obviously better than Netflix Inc and market expectations, which has also given the market a reassurance.

Disney shares rose nearly 7% after the earnings announcement.

During the reporting period, Walt Disney Company's revenue rose 26% year-on-year to $21.504 billion, higher than market expectations of $20.96 billion; diluted earnings per share were 77 cents, compared with 50 cents in the same period last year, up 54% from a year earlier; excluding specific items, diluted earnings per share were $1.09, compared with $0.80 in the same period last year, up 36% from a year earlier and higher than market expectations of 96 cents.

Walt Disney Company's pre-tax operating profit during the reporting period reached US $2.119 billion, an increase of more than 100 per cent over the same period last year, while net operating profit rose 53 per cent to US $1.409 billion.

Breaking up revenue during the reporting period, Walt Disney Company's media and entertainment distribution business contributed $14.11 billion in the quarter, an increase of 11% over the same period last year, while revenue from Walt Disney Company's park, experience and products business soared 70% to $7.394 billion.

During the reporting period, Walt Disney Company's streaming businesses Disney+, Hulu and ESPN+ lost a total of $1.1 billion, mainly due to the rising cost of service content. Walt Disney Company's average revenue per customer in North America also fell 5 per cent this quarter as more customers opted for cheaper products.

The price of streaming media subscription is about to rise.

In the financial report, Walt Disney Company announced that starting from December 8 in the United States, the subscription price of advertised Disney+ will rise to $7.99 per month, equal to the current subscription price of Disney+ without advertising, and the price of advertising-free Disney+ subscription will rise 38% to $10.99, or $3 a month.

In addition, Walt Disney Company said that the price of subscription packages including Disney+, Hulu and ESPN+ will also rise. Among them, the price of unadvertised subscription packages will rise to $14.99 per month, while the price of advertising subscription packages will rise to $12.99 per month.

Can Walt Disney Company's goal of streaming media be achieved?

Walt Disney Company CEO Bob Chapek announced at the end of 2020 that it aims to increase the number of registered users of its flagship streaming service Disney+ to 230 million to 260 million by September 2024. He also said that face-to-face consumer businesses, including Hulu and ESPN+, would also be profitable by then.

At the time, some senior executives thought the goal was too radical, according to people familiar with the matter. At present, Walt Disney Company is facing all kinds of difficulties to achieve this goal, and today's financial report undoubtedly makes the market believe, at least temporarily, that Walt Disney Company's streaming business is on the right track.

To achieve Walt Disney Company's CEO goal, Walt Disney Company needs to add an average of more than 10 million Disney+ users per quarter in the next two years.

The recent Waterloo in Walt Disney Company's streaming business was an obstacle to a move to increase the number of users when it paid an extra premium for streaming rights to the Indian Cricket Premier League in June. The Indian Cricket Premier League is the hottest sporting event in India, far more popular than any other event. Disney+ has a total of 137.7 million subscribers, of which more than 1/3 live in India.

In addition, streaming users are becoming increasingly fickle. In the second quarter of this year, the average turnover rate of Disney+ subscribers in the US, the proportion of subscribers canceled within a month, rose nearly 1 percentage point from a year earlier, from 3.1 per cent to 4 per cent, according to a recent research report released by Antenna, a consumer data analytics company. In recent quarters, Netflix Inc. The growth of competitors' subscribers has slowed or even declined.

When the theme park is in the face of recession, can its income rise significantly?

The most striking feature of the financial report is the sharp increase in revenue at the theme park.

Walt Disney Company Park, Walt Disney World and Walt Disney Company have done well in four other resorts in Europe and Asia, in part because international tourism has resumed after a long disruption due to the epidemic.

Walt Disney Company attributes the department's success in the first half of this year mainly to the new reservation system and the new Genie+ application, which allows tourists to avoid queuing, and the company is better able to manage labor costs and provide promotions. However, one of the problems facing Walt Disney Company is how to maintain this momentum in a possible recession.