Disney+ overtakes Netflix for the first time ever as streamers battle for subscribers

DISNEY announces new ad-supported streaming service while Netflix loses customers.

Statistics show Disney+ has overtaken Netflix in the race for paid subscribers at the start of July.

The demand has increased since the platform Hulu and the sports-focused ESPN+ was introduced.

Later this year, Disney+ will launch a new ad-funded service in the US, which will still be charged at the current subscription rate of $7.99.

The charge for the ad-free service will rise to $10.99 per month.

The firm plans to launch its ad-funded service outside the US next year.

But executives said they do not expect the rise in prices to put off customers over the long term.

They also seeing strong interest from companies hoping to advertise on the new service.

Chief executive Bob Chapek said: "We are in a position of strength with record upfront advertising commitment."

Total revenues in the April-June period jumped 26% from last year, pushing profits to $1.5bn.

Shares in the company jumped more than 6% in after-hours trade after the firm shared its results.

Netflix lost nearly one million accounts in the most recent quarter, putting its subscriber total at 220.67 million.

Paolo Pescatore, analyst at PP Foresight, called it a "pivotal moment in the streaming wars" saying Disney had more room to grow than arch-rival Netflix.

He added: "[The results] firmly underline my belief that Disney is at a different phase of growth to Netflix.

"There are still millions of users to acquire as it continues to expand into new markets and rolls out new blockbuster shows."