Disney+ Saw a Drop of 4 Million Subscribers During Q2 2023
Today during the Walt Disney Company Q2 Earnings it is being reported that Disney+ saw a drop of 4 million subscribers in the second quarter of 2023.
During the quarter, Direct-to-Consumer revenues increased by 12% to $5.5 billion, while the operating loss decreased by $0.2 billion to $0.7 billion. The improvement in operating loss was driven by better performance at Disney+ and ESPN+, although partially offset by lower operating income at Hulu.
At Disney+, the improvement came from higher subscription revenue and reduced marketing costs, even though there were higher programming and production costs, as well as increased technology costs. The rise in subscription revenue was attributed to subscriber growth and retail price increases, offset somewhat by an unfavorable foreign exchange impact. The increase in programming and production costs was due to an expansion of content offerings on the service.
Related – Walt Disney Company Reports Second Quarter Earnings for Fiscal 2023
ESPN+ experienced improved results, mainly driven by growth in subscription revenue due to higher retail pricing and an increase in subscribers.
However, at Hulu, there was a decrease in operating income due to higher programming and production costs, as well as lower advertising revenue. This was partially offset by subscription revenue growth and reduced marketing costs. The increase in programming and production costs was due to expanded content offerings and higher subscriber-based fees for programming the Live TV service. The decrease in advertising revenue resulted from lower impressions, although partially mitigated by higher rates. Subscription revenue growth was driven by retail price increases and an increase in subscribers.
Click here for the full second Quarter Earnings for Fiscal 2023.
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