While Disney+ may have lost another 1.3 million subscribers in the final quarter of 2023 following a price increase, it also managed to cut its streaming business’ losses by $300 million.
Disney shared this news during its Q1 FY24 Earnings Call, revealing that Disney+ went from 112.6 million subscribers on September 30, 2023, to 111.3 million on December 30, 2023. It also shared that Hulu, on the other hand, gained 1.2 million subscribers as it moved from 43.9 million to 45.1 million in the same time frame.
As for the future, Disney anticipates between 5.5 and 6 million Disney+ Core subscriber net additions in Q2 2024.
In regard to the price increase, Disney+’s ad-free plan went up from $10.99/month to $13.99/month on October 12, 2023. The with-ads tier, however, is staying the same for the time being at $7.99/month. There is also an ad-free and ad-free Hulu plan you can subscribe to at $19.99/month.
Disney also still expects to reach profitability for its combined streaming businesses in Q4 FY24 and that this business will “ultimately be a key earnings growth driver for the company.”
Elsewhere in the company, Disney generated “all-time records in revenue, operating income, and operating margin in the first quarter” for its Experiences department, which includes Disney Parks. It also saw revenues for the quarter that were “comparable to the prior-year 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, The Walt Disney Company. “Our strong performance this past quarter demonstrates we have turned the corner and entered a new era for our company, focused on fortifying ESPN for the future, building streaming into a profitable growth business, reinvigorating our film studios, and turbocharging growth in our parks and experiences.”
The earnings call also revealed some exciting news for Disney fans, including that Disney has bought a $1.5 billion stake in Epic Games to create an “expansive” universe within Fortnite, Moana is getting a surprise sequel this November, Percy Jackson and the Olympians is officially getting a second season at Disney+, and that Taylor Swift: The Eras Tour will stream exclusively on Disney+ in March.
Have a tip for us? Want to discuss a possible story? Please send an email to firstname.lastname@example.org.