Disney+ Subscriber Count Drops in the Third Quarter of 2023
The Walt Disney Co. has displayed a significant reduction in its streaming losses during the second quarter, even as it witnessed a departure of 12.5 million subscribers from its Disney+ Hotstar streaming platform in India.
In this quarter, Disney impressively surpassed earnings per share targets set by Wall Street, though it slightly missed the mark on revenue. The entertainment giant reported total revenue of $22.3 billion, marking a 4% increase from the same quarter the previous year. Meanwhile, the operating income stood at $3.6 billion, reflecting a 6% decrease.
Addressing previous warnings to Wall Street, Disney executives anticipated subscriber losses for the Disney+ Hotstar service due to a strategic shift away from low-margin subscribers. This transition, coupled with the loss of significant sports rights in the region, contributed to a noticeable churn in the Hotstar platform.
Related – Disney Earnings Grew in the Third Quarter of 2023 Due to Company Restructuring
Notably, losses within the direct-to-consumer unit were halved compared to the corresponding period last year. The direct-to-consumer operations reported a loss of $512 million, a stark contrast to the $1 billion loss reported in 2022. However, operating income for Disney’s linear networks experienced a 23% decline, amounting to $1.9 billion. On a brighter note, Disney’s Parks, Experiences, and Products arm recorded a 13% surge in revenue, reaching $8.3 billion, while its operating income witnessed an 11% increase, totaling $2.4 billion.
Beyond these figures, Disney achieved a notable gain of 800,000 subscribers in other global regions. Within the U.S. and Canada, Disney+ experienced a slight loss of 300,000 subscribers, whereas the streaming-exclusive segment of Hulu observed a comparable gain of subscribers.
As Disney navigates this dynamic landscape, the second quarter’s results serve as a testament to the company’s strategic resilience and adaptability. While challenges persist, the company’s multifaceted operations and global reach continue to showcase its enduring prowess and capacity for growth.
“Our results this quarter are reflective of what we’ve accomplished through the unprecedented
the transformation we’re undertaking at Disney to restructure the company, improve efficiencies, and restore creativity to the center of our business,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company.
“In the eight months since my return, these important changes are creating a more cost-effective, coordinated, and streamlined approach to our operations that has put us on track to exceed our
initial goal of $5.5 billion in savings as well as improved our direct-to-consumer operating income by roughly $1 billion in just three quarters.
While there is still more to do, I’m incredibly confident in Disney’s long-term trajectory because of the work we’ve done, the team we now have in place, and because of Disney’s core foundation of creative excellence and popular brands and franchises.”
To read the full third-quarter earnings report for 2023 click here.
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