As it surpasses Netflix in the battle for subscribers, Disney will introduce a brand-new ad-supported streaming service in the US in December.
As of 2 July, the company reported having 221.1 million subscribers across its three streaming channels.
In contrast, Netflix, a rival, has been losing customers.
However, Disney issued a warning that the loss of cricket streaming rights in India will slow subscriber growth relative to earlier projections.
The company, which also owns the sports-focused ESPN+ and the general-audience television network Hulu, claimed that demand for its Disney+ offering was still robust.
Disney and other streaming services benefited from pandemic lockdowns, but it doesn't appear like Covid is losing consumers as a result of the relaxation of its limitations.
In the third quarter, the firm added 14.4 million Disney+ customers, significantly more than experts had predicted.
It will introduce a new advertising-supported service later this year, which will continue to be priced at the $7.99 monthly subscription level. The monthly fee for the ad-free subscription will increase to $10.99.
Next year, the company intends to introduce its ad-supported service outside of the US.
Executives stated that they do not anticipate long-term client repulsion as a result of the price increase. According to the company, there is also a lot of interest from businesses looking to advertise on the new service.
In a conference call to announce the company's financial achievements, chief executive Bob Chapek said, "We are in a position of strength with record upfront advertising commitment.
Disney's increases in subscribers have come at a high price; its streaming division lost $1.1 billion in the quarter.
The firm has a sizable financial buffer because to a solid increase in theme park attendance since the worst of the pandemic, according to executives, who expect losses to peak this year.
Profits increased to $1.5 billion during the April–June time frame thanks to a 26% increase in total revenues.
Following the release of the findings, the company's shares increased by more than 6% in after-hours trading.
A PP Foresight analyst named Paolo Pescatore described it as a "pivotal moment in the streaming battles," noting that Disney had more capacity to expand than Netflix, its main opponent.
The most recent quarter saw a loss of about one million accounts for Netflix, bringing the total number of subscribers to 220.67 million.
That has more over 221 million subscribers, which is slightly behind Disney. Disney tracks each streaming platform subscription independently, so those who subscribe to multiple services are tracked twice.
According to Mr. Pescatore, "[The results] firmly reinforce my conviction that Disney is at a different phase of growth than Netflix." "As it continues to enter new markets and put out new hit series, there are still millions of users to be acquired."