Shares of Walt Disney Co. (NYSE:DIS) rallied on news that the company’s Disney+ streaming service has passed 50 million paid subscribers worldwide. The world’s largest entertainment company had previously projected 60 million to 90 million Disney+ subscribers by 2024.
The five-month-old service has used a combination of low price and family-friendly programming to put the platform on a record-setting pace. In the past month, the company launched the online video service in eight European nations and India, helping fuel growth. India now accounts for eight million subscribers, Disney said.
Disney shares, which have been hit hard in recent weeks by the shutdown of its theme parks and the postponement of live sports and movie releases, jumped in after-hours trading on the subscriber news. Disney’s stock price climbed as much as 8.1% to $109.30 U.S.
Disney+ is part of the company’s expansive online video strategy that includes ESPN+ sports service and Hulu, which has programming for general audiences. With hundreds of millions of families around the world stuck in their homes to avoid the coronavirus, streaming services have seen a big boost in viewers.
Disney+ features original programs, such as the Star Wars spinoff “The Mandalorian,” as well as hundreds of classic movies and TV shows from the company’s vault. At $7 U.S. a month in America, Disney+ is also cheaper than Netflix, which remains the market-leading streaming service.
Because of the global restrictions on public gatherings, Disney has been rushing to put movies on the service that would have normally had longer exclusive runs in theaters. “Onward,” a recent Pixar release, appeared on Disney+ this month, while “Artemis Fowl,” which was to land in theaters in May, will now debut on the service.