Home ›› 13 May 2023 ›› Show Biz
Subscribers to Disney Plus fell for the second straight quarter, the company said on Wednesday, though it stemmed financial losses as it competes with Netflix for viewers.
Analysts had foreseen an increase in subscribers for the period, but a hike in prices sent customers turning away from the platform that streams Marvel, Star Wars and Disney content across the globe.
Total subscribers to Disney Plus fell to 157.8 million, the Burbank, California-based group said, with the company losing $659 million in its streaming unit, though this was not as bad as expected.
The contraction of the Disney Plus subscriber portfolio was mainly due to an 8 percent drop in India, where the Hotstar version of the service accounts for almost a third of the global total. But the entertainment giant also saw a slight decline 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.
Disney said that despite the fall in subscribers, revenue per customer had increased and added it believed the subscribers would again pick up, especially with the rise of cheaper ad-based service.
Overall, Disney generated $21.8 billion in revenue, with a solid performance by its theme parks.
The company pointed to especially good attendance at Disney resorts in Paris, Shanghai and Hong Kong.
Iger came out of retirement late last year to return as chief executive, taking back the reins from Bob Chapek, who he had hand-picked to succeed him in 2020.
In his first post-return earnings in January, Iger announced a major restructuring of the company as well as belt-tightening and layoffs that he said saved the company over $5 billion.
More than 11,000 Hollywood television and movie writers went on their first strike in 15 years last week.
