In the ever-evolving landscape of streaming services, Disney+ has experienced a notable shift. The final quarter of 2023 saw Disney+ lose 1.3 million subscribers, a move that coincided with a price hike for its ad-free plan. Despite this decrease in subscriber numbers, Disney managed to cut its streaming business losses by a substantial $300 million.
The Q1 FY24 Earnings Call was a platform where Disney shared these insights, highlighting a drop from 112.6 million subscribers on September 30, 2023, to 111.3 million on December 30, 2023. However, it wasn’t all a downward trend; Hulu, another streaming service under the Disney umbrella, gained 1.2 million subscribers during the same period.
Looking ahead, Disney has set its sights on an increase in Disney+ Core subscriber net additions, projecting between 5.5 and 6 million in Q2 2024. This optimistic outlook is despite the price increase that saw Disney+’s ad-free plan go from $10.99/month to $13.99/month on October 12, 2023. The with-ads tier remains at $7.99/month, offering a more budget-friendly option for consumers.
Disney’s strategy appears to be paying off, as the company still expects to reach profitability for its combined streaming businesses in Q4 FY24. This goal is part of a broader vision for the streaming business to become a “key earnings growth driver for the company.”
The company’s Experiences department, which includes Disney Parks, reported “all-time records in revenue, operating income, and operating margin in the first quarter.” Overall, the quarter’s revenues were “comparable to the prior-year quarter at $23.5 billion.”
Robert A. Iger, Chief Executive Officer of The Walt Disney Company, expressed confidence in the company’s trajectory, stating, “Our strong performance this past quarter demonstrates we have turned the corner and entered a new era for our company.” The focus is now on fortifying ESPN, building streaming into a profitable growth business, reinvigorating film studios, and turbocharging growth in parks and experiences.
The earnings call also brought exciting news for Disney fans. Disney has invested in a $1.5 billion stake in Epic Games to create an “expansive” universe within Fortnite. Additionally, Moana is set to receive a sequel in November, Percy Jackson and the Olympians is getting a second season, and Taylor Swift: The Eras Tour will stream exclusively on Disney+ in March.
As Disney+ navigates the competitive streaming market, it’s clear that the company is not shying away from bold moves to ensure its long-term success. With a focus on strategic growth and profitability, Disney+ is poised to continue being a major player in the world of digital entertainment.
Related posts:
Disney+ Loses 1.3 Million Subscribers Following Price Increase
Disney+ Drops 1.3 Million Subscribers Amid Price Hike, Streaming Loss Shrinks by $300 Million
Disney+ drops 1.3 million subscribers amid price hike. Streaming loss shrinks by $300 million. News – Entertainment – Video/Streaming
