Disney+ recently experienced a decline in subscribers, losing 1.3 million global subscribers in the final three months of 2023. This decrease in subscribers can be partially attributed to the substantial price increase implemented by Disney+ during that same quarter. The streaming platform raised the price of its ad-free Disney+ Premium plan by $3, bringing the cost of commercial-free watching from $10.99 to $13.99 per month. Despite this decline, Disney+ remains optimistic about its future and expects to acquire between 5.5 and 6 million additional subscribers by the end of its current quarter.
The increase in subscription cost seems to have had a significant impact on Disney+’s subscriber base, especially in the U.S. and Canada, where the platform lost around 400,000 subscribers. Internationally, the losses were even greater, amounting to 900,000 subscribers. The total number of subscriptions decreased from 112.6 million to 111.3 million at the close of its first fiscal quarter.
It is worth noting that Disney+ is not the only streaming platform to increase its subscription prices. Hulu, another Disney-owned streaming platform, also introduced a $3 increase on its ad-free plan, raising the price from $14.99 to $17.99. Surprisingly, Hulu managed to secure a 1.2 million boost in subscribers despite the price increase. Disney+ Hotstar, the company’s Indian subscription streaming service, also saw a significant increase in subscribers from the previous quarter.
While Disney+ has struggled to turn a profit since its founding, it is making efforts to improve its financial performance. The streaming company was able to cut its operating losses from $420 million as of September 30 to $138 million as of December 30. Disney+ is also implementing strategies to boost profitability and increase its subscriber base. It has cracked down on shared passwords, following in Netflix’s footsteps, which reportedly gained nine million new subscribers after implementing a similar ban.
In an attempt to attract more subscribers, Disney+ announced that it will be the exclusive home for the streaming version of the “Taylor Swift: The Eras Tour” film, which debuted in theaters in October 2023. Additionally, Disney has entered into a strategic relationship with Epic Games, a video game software company and maker of “Fortnite.” This partnership involves a $1.5 billion investment from Disney and aims to create a “huge Disney universe” that will be interconnected with the popular game. Disney sees this as a significant step, considering the current gaming trends among Gen Alpha, Gen Z, and millennials.
Furthermore, Disney is investing heavily in sports content and plans to launch a flagship ESPN streaming service in 2025. This service will be separate from its existing ESPN+ sports streaming service and will cater to sports lovers with features like integrated betting, fantasy sports, personalization, customization, shopping, and deeper statistics. Disney will also have a stake in an upcoming sports-streaming bundle, which is a joint venture with Fox and Warner Bros. Discovery.
Despite the recent decline in subscribers, Disney+ remains determined to rebound in the coming quarters. With its strong content library and strategic investments in gaming and sports content, Disney+ hopes to not only attract more subscribers but also achieve profitability by the end of its current fiscal year.
