• Tuesday, March 05, 2024
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BusinessDay

Disney+ loses 1.3m subscribers in three months

Disney Animation, Kugali new series “Iwájú” premieres in Lagos

Disney+, an American video streaming media service, has lost 1.3 million customers globally within three months, largely on the back of soaring prices.

In a statement on Thursday, the company revealed that its global subscribers fell to 111.3 million in December 2023 from 112.6 million in September.

“Disney+ Core subscribers decreased sequentially by 1.3 million, in line with prior guidance and reflecting a substantial price increase in the quarter as well as the end of the global summer promotion,” the statement said.

Despite the loss in subscribers, the streaming platform reduced its streaming business losses by $300 million in the fourth quarter of last year.

Subscribers from the United States, Canada, and international users, also decreased from 112.6 million to 111.3 million.

The revenue remained unchanged at $23.5 billion in 2023, depreciating from the $23.8 billion average estimate. This was because of the challenges in Disney’s TV business and underperformance of two movie releases, “The Marvels” and “Wish.”

“Despite revenue challenges, Disney anticipates a profit increase of at least 20 percent for the year, reaching around $4.60 per share,” the company said.

Robert A. Iger, chief executive officer of Walt Disney Company, noted that Just one year ago, he outlined an ambitious plan to return the Walt Disney Company to a period of sustained growth and shareholder value creation.

“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,” he added.