Disney+ sees a drop of 7 million subscribers before price increase.
Disney Loses 7.7 Million Subscribers to Streaming Service
According to Disney’s third-quarter report, the company has experienced a significant decrease in subscribers to its streaming service. With a total of 146.1 million subscribers, there has been a 7.4% decrease compared to the previous quarter. The majority of these losses can be attributed to Hotstar, the Indian equivalent, which saw a 24% decline in subscribers. Meanwhile, domestic subscribers from the US and Canada decreased by 1%.
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Despite the decline in subscribers, Disney’s streaming losses have improved compared to the previous year. Last year, the company lost a staggering $1.1 billion, whereas this quarter, the losses amounted to $512 million. Additionally, the company recently announced a price increase for its ad-free version of the service, which will now cost $13.99 a month starting from October 12. However, the ad-supported tier will maintain its current price of $7.99 a month, and the bundle of Disney+ and Hulu will still be available for $9.99 a month.
Furthermore, ESPN+ will also see a price increase of one dollar as part of the company’s ”cost savings” measures, which include laying off several commentators. One of the network’s long-standing anchors, Suzie Kolber, who had been with the network for 27 years, was unfortunately among those laid off.
Disney has faced other challenges recently, such as layoffs within Pixar Animation Studio and a previous round of layoffs that affected 7,000 employees. These cost-saving efforts have been part of a $5.5 billion initiative, representing approximately 3% of Disney’s global workforce of 220,000 employees.
In a controversial move, Disney partnered with a gender-fluid influencer, Seann Altman, for a clothing ad. Altman showcased how to dress like Minnie Mouse on TikTok, which sparked outrage among some users. This led to calls for a boycott of the company by conservative figures.
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