According to a newly released earnings report, Disney+ experienced a decline in subscribers for the second consecutive quarter in the first three months of 2023, with 4 million customers dropping the service. The company had also seen a decline in subscribers at the end of 2022.
However, there was some positive news for the company, as they reported a reduction in streaming business losses by $400 million, which is a 26% year-over-year decrease.
At the end of the first quarter of 2023, Disney+ had 157.8 million subscribers, which Variety clocked as lower than Wall Street’s anticipated 163.17 million. The decline in subscribers was driven by a sequential drop of 4.6 million in Disney+ Hotstar, the version of the service available in India and Southeast Asia.
In North America, Disney+ lost roughly 300,000 subscribers, bringing its total to 46.3 million, but gained almost 1 million subscribers in international markets. Hulu gained 200,000 subscribers in the quarter, reaching a total of 48.2 million, while ESPN+ increased by 400,000 to 25.3 million.
Despite the decrease in subscribers, CEO Bob Iger expressed satisfaction with the company’s performance in the quarter, attributing the improved financial results of the streaming business to the strategic changes the company has made to position Disney for sustained growth and success.
On Wednesday, Disney’s stock closed at $101.14 per share. Iger and other Disney executives are scheduled to host a conference call to discuss the quarter’s performance in greater detail.
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