Disney Plus vs. Netflix: New Service Has 10M Subscribers On First Day

The Walt Disney Company's Disney Plus subscription video on-demand (SVOD) streaming service debuted Tuesday and signed-up 10 million subscribers worldwide, a record for any streaming service opening -- but that's not the whole story.

Analysts said this massive number is larger than the total number of subscribers signed-up by HBO Now, ESPN+, CBS All Access +, Showtime, DAZN and Crunchyroll since they began their individual streaming services. The Disney Plus number represents over 6% of Netflix’s total subscriber number worldwide.

For example, HBO Now began streaming in 2015 and ESPN+ in 2018. HBO Now has 8 million subscribers as of October. On the other hand, ESPN has 3.5 million subscribers as of this month.

Netflix, which introduced streaming in 2007, currently has 158 million subscribers worldwide as of October. Of this total 60.6 million are in the United States. Amazon, a major streaming player, doesn’t disclose the number of Amazon Prime Video users but analysts concur this figure stands at over 100 million.

Disney forecasts its Disney Plus will have anywhere from 60 million and 90 million subscribers by 2024. On the other hand, financial services and investment firm Wedbush Securities estimates Disney might hit its target of 60 million to 90 million subscribers ahead of its 2024 target.

The 10 million Disney number, however, isn't quite accurate. Apart from paid subscribers, it also includes those that took advantage of a seven-day free trial and presales. This number was also boosted by Verizon, which is offering its customers a free year of Disney Plus. Disney hasn't issued a breakdown of the 10 million subscriber number.

This huge haul, however, was enough to impress analysts. Daniel Ives at Wedbush Securities saw the 10 million subscriptions as "jaw dropping." He said this total was also "considerably higher than we and many on the Street were anticipating."

He also noted that Disney appears to be "coming out of the gate with unmatched content and a massive brand/distribution that makes the House of Mouse a legitimate streaming competitor on Day One to Netflix."

Ives said Disney "has a whole other strategy as the company has a content library that is unmatched with a global consumer base that will be tapped through its theme parks and other vast distribution tentacles."

Disney CEO Bob Iger called the launch of Disney Plus "a historic moment for our company that marks a new era of innovation and creativity." In a separate statement, Disney said it has seen "extraordinary consumer demand" and "has already reached a major milestone, achieving a remarkable 10 million sign-ups since launching."

Disney's stock rose 7.3% to $148.72 on Tuesday, the Disney Plus roll-out day but declined slightly by 0.27% in after hours.

Disney Plus launched first in the U.S., Canada, and the Netherlands on Tuesday. It will launch in Australia, New Zealand and Puerto Rico on Nov. 19, and the United Kingdom, France, Spain, Italy, Germany and Ireland on March 31, 2020.