While Disney+ may have lost another 1.3 million subscribers in the final quarter of 2023 after raising prices, it also managed to cut losses in its streaming business by $300 million.
Disney shared this news during its Q1 2023 earnings call, reporting that Disney+ lost 112.6 million subscribers as of September 30, 2023, to 111.3 million as of December 30, 2023. The company also reported that Hulu, by contrast, gained 1.2 million subscribers, increasing from 43.9 million to 45.1 million over the same time period.
Looking ahead, Disney expects 5.5 to 6 million new Disney+ Core subscribers in the second quarter of 2024.
In terms of price increases, Disney+’s ad-free plan has increased in price from $10.99 per month to $13.99 per month on October 12, 2023. However, the advertising plan remains the same for now – $7.99 per month. There is also an ad-free and ad-supported Hulu plan that you can sign up for for $19.99 per month.
Disney still expects to achieve profitability in the combined streaming business in Q4 of FY24, and the business “will ultimately be a key driver of the company’s earnings growth.”
Elsewhere in the company, Disney set “record revenue, operating profit and operating margin” in the first quarter for its Experiences division, which includes Disney parks. Revenue for the quarter was “comparable to the prior quarter at $23.5 billion.”
“Just one year ago, we outlined an ambitious plan to return The Walt Disney Company to a period of sustained growth and shareholder value creation,” said Robert A. Iger, Chief Executive Officer of The Walt Disney Company. “Our strong performance this past quarter demonstrates that we have turned the tide and entered a new era for our company, focused on strengthening ESPN for the future, making streaming a profitable growth business, revitalizing our film studios and accelerating the growth of our parks and entertainment businesses.” .
2024-02-08 06:06:22
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