Disney says Disney+ has 26.5 million subscribers

Disney's stock rose Tuesday after revealing that its new streaming service, Disney+, now has 26.5 million paid subscribers. It also said that ESPN+, its sports streaming service, now has 6.6 million subscribers, up from 3.5 million in November.

Why it matters: Disney's strong showing shortly after it debuted its streaming service last November shows that it will be a formidable competitor to Netflix in the streaming wars.

Be smart: The fact that ESPN+ subscriber numbers increased so much shows that consumers are liking Disney's cheap bundled subscription package that includes Disney+, ESPN+ and Hulu Live for $12.99 monthly.

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