Disney+ Started 2025 with a Loss of 700,000 Subscribers

by

In the final quarter of 2024, which marked the start of Disney+’s fiscal year 2025, the streaming platform experienced a setback by shedding approximately 700,000 subscribers. Excluding Disney+ Hotstar, its lower-cost alternative available in India, the service currently boasts around 124.6 million active paying users.

ESPN+ experienced a decrease of approximately 700,000 subscribers, but Hulu stepped up and gained an additional 1.6 million, bringing their total to 53.6 million. Even with this change, Disney’s streaming division has managed to generate profits for three consecutive quarters.

Disney had anticipated this decrease, as they were aware of the impending drop and expected a further modest reduction up until 2025. Increased prices and the conclusion of specific promotions contributed significantly to their financial losses. However, this stands in stark contrast to the impressive addition of 4.4 million subscribers that Disney+ welcomed between June and September 2024.

Wall Street had set lower targets. Analysts forecasted earnings of approximately $1.43 for every dollar of $24.55 billion in revenue, as suggested by Yahoo Finance. However, Disney surpassed these estimates by reporting earnings per share of $1.76 and revenue of $24.7 billion—but some adjustments were made to the figures.

Disney continues to lead the television landscape, as per Nielsen ratings. Among all media companies, it stands out as the most-viewed, with YouTube being the closest contender. Popular shows on Disney+ and Hulu include ‘Bluey’, ‘Grey’s Anatomy’, and the Fox animation block known as ‘Animation Domination’. Additionally, ESPN and ABC attract significant viewership through their coverage of ‘Monday Night Football’.

Over the holiday season, popular titles such as ‘Home Alone’ and ‘Hocus Pocus’ gave Disney+ a significant increase in viewership. Additionally, the streaming premiere of ‘Deadpool & Wolverine’ in November proved to be highly successful.

CEO Bob Iger expressed considerable satisfaction with the outcomes. He stated, “Our creativity and financial robustness are evident,” emphasizing the impressive box office earnings, the consistent profitability of our streaming sector, and ESPN’s aggressive move towards digital platforms.

Even with subscriber losses, Disney is staying on top. Now, the question is how long that lasts.

Read More

2025-02-05 17:14