Disney+ Streaming Service Loses 4m Subscribers in First Quarter
Disney has reported a loss of 4 million subscribers to its flagship streaming service in the first quarter of the year.
Despite the decline in subscribers, Disney+ was able to reduce its losses by $400m. The company behind the Marvel and Star Wars franchises is under pressure to make its streaming business profitable amid a shrinking traditional film and television market.
Most of the subscriber losses came from its Hotstar service in Asia, which lost streaming rights to Indian cricket matches last year. In the US and Canada, Disney+ also lost around 300,000 customers after raising subscription prices.
The announcement comes after thousands of Hollywood TV and movie screenwriters held their first strike in 15 years last week. They are calling for better pay and working conditions as the transition to streaming has upended the traditional television and film industry.
The last writers’ strike in 2007 lasted 100 days and cost the industry an estimated $2bn. Although Disney’s chief financial officer, Christine McCarthy, declined to estimate how much the latest strike could cost the company, the walkout has already shut down several Disney projects, including those set to run on Disney+.
Disney has poured billions of dollars into its streaming platforms in recent years, transforming it from a company rooted in traditional television, movies and theme parks into one of the streaming industry’s major players.
The company has a total of more than 231 million subscriptions across its three streaming platforms, which also include the sports-focused ESPN+ and wider entertainment site Hulu.
Disney+ has close to 158 million subscribers worldwide, although it is still behind rival Netflix’s 232.5 million subscribers. Despite the subscriber loss, Disney CEO Bob Iger said the improved financial performance reflects “the strategic changes we’ve been making throughout the company to realign Disney for sustained growth and success.”
