Disney Plus loses subscribers for the second quarter in a row

Subscribers to Disney Plus declined for the second quarter in a row, the company reported on Wednesday, though it cut financial losses as it competes for viewers with Netflix.

Analysts predicted a rise in subscribers for the time, but a price increase drove users away from the platform, which streams Marvel, Star Wars, and Disney content globally. Total Disney Plus subscribers plummeted to 157.8 million, according to the Burbank, California-based corporation, with the company losing $659 million in its streaming arm, albeit this was not as severe as predicted.

The Disney Plus subscriber portfolio shrank mostly due to an 8% reduction in India, where the Hotstar version of the service accounts for about a third of the global total. However, the entertainment behemoth reported a modest dip in North America.

“We were pleasantly surprised that the loss of subs due to what was a substantial increase in pricing… was relatively small,” CEO Bob Iger told analysts after the company posted its earnings.

Despite the drop in customers, Disney claimed revenue per customer had increased and that it expected subscriber growth to resume, especially with the development of cheaper ad-based services.

Overall, Disney made $21.8 billion in revenue, with its theme parks performing admirably.

This article has been posted by a News Hour Correspondent. For queries, please contact through [email protected]
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