INDIA: Disney reported a 4 million subscriber loss to its main streaming service, Disney+, in the first three months of the year. This was the second consecutive quarter of consumer losses following a net loss of 2.4 million during the prior three months. Analysts predicted over 1 million new subscribers to sign up throughout the quarter, leading to a 5% drop in shares.
After losing the ability to broadcast cricket games from the Indian Premier League (IPL), Disney+ Hotstar in India lost the majority of its subscriber base. Disney also saw a 300,000 customer loss in the US and Canada as a result of the December subscription price increase.
Disney+ has had a steady rise in UK homes, reaching 6.1 million users in the first quarter, while Netflix has 15 million subscribers. The OTT giant is priced at £7.99 per month or £79.90 per year. However, as the cost of living crisis and epidemic boom faded, all major streaming services have been losing subscribers, with 170,000 streaming services no longer being paid for at the beginning of the year.
The company’s streaming division reported improved financial results, cutting operational losses to $659 million and increasing visitor counts in Shanghai, Paris, and Hong Kong. The company’s theme parks performed better, increasing operating income by 23% to $2.2 billion, while the traditional television sector had a 35% decline.
Bob Iger, the president and CEO of Walt Disney, has announced a new app that will combine Disney+ and Hulu. It will simplify the viewing process for members and provide additional options for marketers. By the end of the year, the OTT platform in Europe will also provide an ad-supported option.
The company announced a cost-cutting campaign in February, including 7,000 job cuts, to save $5.5 billion. To compete with Netflix, Disney has invested billions of dollars in streaming services. Iger claims the entertainment giant needs to become better at curating franchise content due to the cost.
The Writers Guild of America’s tens of thousands of Hollywood screenwriters went on strike for the first time in fifteen years, demanding greater pay and working conditions. The company was forced to halt the filming of Star Wars: Andor and Marvel’s Blade due to the strike.