Celebrities

Disney+ Subscribers Decline Amid Price Hike: A Closer Look at Q1 2024 Earnings

Robert Mulokwa

08 Feb 2024 — 2 min read

Disney Plus

Disney+ has been a streaming powerhouse, but recent developments have raised eyebrows. In the final quarter of 2023, Disney+ experienced a significant drop in subscribers—1.3 million to be precise. What’s behind this decline, and what does it mean for the streaming giant’s future? Let’s dive into the details.

The Price Hike Effect

Last fall, Disney+ implemented a hefty price hike, and the repercussions are now evident. The streaming service lost 1.3 million subscribers during the October-December period. This decline affected Disney+ Core subscribers, which include users from the U.S., Canada, and international markets (excluding India-based Disney+ Hotstar). The subscriber count dropped from 112.6 million in the previous quarter to 111.3 million ¹.

A Narrowing Loss

Despite the subscriber dip, there’s a silver lining. Disney+ managed to narrow its streaming business losses by a whopping $300 million during Q1 2024 compared to Q4 2023. This reduction in losses is a positive sign, indicating that Disney’s strategic moves are paying off. The company is on track to reach profitability in its streaming business by the end of the fiscal year.

Disney+ Hotstar’s Rebound

While Disney+ Core faced challenges, Disney+ Hotstar saw growth. It added 700,000 subscribers during the same quarter, reaching 38.3 million. This marks a turnaround for Hotstar, which had experienced a mass exodus of 12.5 million subscribers last year due to a shift away from low-margin customers and the loss of key sports rights in the region.

The Hulu Integration

Disney’s streaming strategy extends beyond Disney+. Hulu, another major player, gained 1.2 million subscribers, bringing its streaming-only subscriptions to 45.1 million. The integration of Hulu content into Disney+ began in December, with a more comprehensive version planned for March 2024.

The Road Ahead

Disney’s streaming business is a dynamic landscape. The company aims to meet or exceed its $7.5 billion annualized savings target by the end of fiscal 2024. With a narrowing loss and strategic moves in play, Disney+ remains a force to be reckoned with in the streaming wars.

Conclusion

While subscriber fluctuations are inevitable, Disney+ continues to evolve. As the streaming market evolves, Disney’s adaptability and content offerings will determine its long-term success.

Are you a Disney+ subscriber? I’d love to hear your thoughts.

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