The Walt Disney Corporation released its first quarter earnings today, which revealed a mixed bag of results for its direct-to-consumer streaming services, including Disney+. While the average revenue per user is up thanks to price hikes, the number of Disney+ subscribers has declined by over 1 million users.
In the first quarter of Disney’s FY 2024, which is the period from October-December 2023,, Disney’s direct-to-consumer unit experienced a $138 million operating loss. However, the combined losses for all of Disney’s streaming operations, including ESPN+, were reported at $216 million, a significant reduction from the $1.05 billion loss recorded in the corresponding period of the previous year. This demonstrates an improvement in the financial performance of Disney’s streaming services.
Related: Taylor Swift Eras Tour (Taylor’s Version) to Stream Exclusively on Disney+ Beginning Next Month
The reduction of 1.3 million Disney+ core subscribers from the previous quarter was attributed to price increases implemented by the company. Despite this decrease in subscriber numbers, Disney reported a rise in average revenue per user (ARPU) for the period. This increase in ARPU was a direct result of the subscription cost hikes, indicating that while the subscriber base shrank, revenue per remaining subscriber improved.
Disney recently announced the launch of a new sports streaming venture, a collaboration among ESPN, Fox, and Warner Bros. Discovery. This venture, revealed the day before the earnings report, aims to expand Disney’s offering in the sports streaming domain. Disney also announced Taylor Swift’s Eras Tour will stream exclusively on Disney+. These new ventures should serve to shore up Disney’s subscriber base in future quarters.
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